Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a negative prior quarter and improved versus the same quarter last year. Operating cash flow was the primary driver of the change, while capital expenditure remained stable.
- Revenue increased, and operating cash flow turned positive, leading to a positive free cash flow and an improved free cash flow margin compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, operating cash flow shifted from negative to positive, free cash flow turned positive, and the margin improved significantly. Versus the same quarter last year, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$204.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$71.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$82.8M
Cash generated by operations before capital spending.
CapEx
$11.3M
Capital spending and related asset purchases.
FCF margin
14.2%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $412.7M | $62.9M | $14.0M | $48.9M | 11.9% |
| 2023-12-31 | $430.4M | $140.0M | $24.0M | $116.0M | 27.0% |
| 2024-03-31 | $459.9M | -$15.9M | $16.2M | -$32.1M | -7.0% |
| 2024-06-30 | $503.2M | $82.8M | $11.3M | $71.4M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 172.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Recovery
Operating cash flow reversed from a negative prior quarter to a positive figure, which was the strongest observable change driving free cash flow higher.
This recovery lifted free cash flow from negative to positive and significantly improved the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow turned positive, leading to a positive free cash flow and an improved free cash flow margin compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, operating cash flow shifted from negative to positive, free cash flow turned positive, and the margin improved significantly. Versus the same quarter last year, operating cash flow, free cash flow, and margin were all higher.
Monitor whether operating cash flow can sustain its positive level in the next quarter.