Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both rose from the prior quarter and the year-ago quarter. Free cash flow margin held steady versus a year earlier but declined sequentially as capital expenditure increased.
- Operating cash flow represented a smaller share of revenue compared to the previous quarter, while capital expenditure took up a larger share; the resulting free cash flow margin matched the year-ago level but weakened sequentially.
- Revenue and operating cash flow improved sequentially and year-over-year. Free cash flow was higher than a year ago but lower than the previous quarter, and free cash flow margin was stable versus the prior year but weaker quarter-over-quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$220.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$64.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$91.3M
Cash generated by operations before capital spending.
CapEx
$26.5M
Capital spending and related asset purchases.
FCF margin
11.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $544.3M | $91.3M | $26.5M | $64.8M | 11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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.
Revenue Growth
Revenue rose sequentially and year-over-year, providing a larger base from which operating cash flow was generated. The increase in revenue was the strongest observable driver of the improvement in operating cash flow.
Higher revenue supported higher operating cash flow and free cash flow compared to the year-ago quarter, even as capital expenditure rose.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow represented a smaller share of revenue compared to the previous quarter, while capital expenditure took up a larger share; the resulting free cash flow margin matched the year-ago level but weakened sequentially.
Revenue and operating cash flow improved sequentially and year-over-year. Free cash flow was higher than a year ago but lower than the previous quarter, and free cash flow margin was stable versus the prior year but weaker quarter-over-quarter.
Monitor the trend in capital expenditure, which increased sequentially and contributed to the sequential decline in free cash flow.