Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened sequentially but improved compared to the same quarter last year. Operating cash flow was the primary driver of the sequential decline.
- Revenue was relatively stable across periods. Operating cash flow converted to free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than the prior quarter but higher than the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$573.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$84.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$106.6M
Cash generated by operations before capital spending.
CapEx
$22.0M
Capital spending and related asset purchases.
FCF margin
8.6%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-06-30 | $960.8M | $140.3M | $13.5M | $126.8M | 13.2% |
| 2023-09-30 | $937.5M | $178.8M | $18.5M | $160.3M | 17.1% |
| 2023-12-31 | $988.1M | $231.3M | $29.9M | $201.4M | 20.4% |
| 2024-03-31 | $978.8M | $106.6M | $22.0M | $84.6M | 8.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 57.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $131.9M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Volatility
Operating cash flow was substantially lower than the prior quarter, driving the decline in free cash flow and margin. Revenue was nearly unchanged, so the change in cash conversion was not driven by top-line movement.
The sequential weakening in cash generation is the most notable observable change this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was relatively stable across periods. Operating cash flow converted to free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than the prior quarter but higher than the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the allowance for credit losses, which increased from the prior quarter end, as noted in the filing.