Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow both improved strongly this quarter, supported by a sharp rise in the cash conversion margin. Revenue also grew sequentially and compared with the same quarter last year.
- Operating cash flow exceeded capital expenditure by a wide margin, yielding a free cash flow margin that was higher than the prior quarter and the year-ago quarter. Revenue conversion into operating cash flow strengthened compared with both periods.
- Compared with the immediately preceding quarter, free cash flow and operating cash flow were higher, while capital expenditure was slightly lower. Versus the same quarter one year earlier, all metrics except capital expenditure were higher, with free cash flow margin notably improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$329.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$225.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$250.2M
Cash generated by operations before capital spending.
CapEx
$24.8M
Capital spending and related asset purchases.
FCF margin
39.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $575.1M | $250.2M | $24.8M | $225.4M | 39.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 166.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$225.4M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow generation
Operating cash flow rose sharply compared to both the prior quarter and the year-ago period, while capital expenditure remained stable. This drove the highest free cash flow and free cash flow margin among the three quarters shown.
The elevated cash conversion enabled a larger free cash flow relative to revenue without a proportional increase in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, yielding a free cash flow margin that was higher than the prior quarter and the year-ago quarter. Revenue conversion into operating cash flow strengthened compared with both periods.
Compared with the immediately preceding quarter, free cash flow and operating cash flow were higher, while capital expenditure was slightly lower. Versus the same quarter one year earlier, all metrics except capital expenditure were higher, with free cash flow margin notably improved.
Monitor the trajectory of cash and cash equivalents, which decreased from the same date last year per the liquidity summary.