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 increased from the prior quarter and the same quarter last year, while capital expenditure decreased from the prior quarter. Free cash flow turned positive and the free cash flow margin improved compared to both periods.
- The cash conversion ratio, measured by free cash flow as a percentage of revenue, improved as operating cash flow grew faster than revenue and capital expenditure declined relative to the prior quarter.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow turned from negative to positive. Versus the same quarter one year earlier, all metrics except capital expenditure were higher; capital expenditure was higher than a year ago.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$118.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$40.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$100.3M
Cash generated by operations before capital spending.
CapEx
$60.1M
Capital spending and related asset purchases.
FCF margin
5.8%
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 | $640.1M | $149.0M | $56.2M | $92.8M | 14.5% |
| 2024-03-31 | $656.4M | $139.6M | $376.7M | -$237.1M | -36.1% |
| 2024-06-30 | $677.8M | $58.1M | $72.8M | -$14.7M | -2.2% |
| 2024-09-30 | $692.6M | $100.3M | $60.1M | $40.2M | 5.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | 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.
Higher operating cash flow and lower capex
Operating cash flow rose from the prior quarter, while capital expenditure fell, leading to a significant improvement in free cash flow. The revenue increase provided additional support.
The combination of higher operating cash flow and lower capital spending drove free cash flow from negative to positive and lifted the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The cash conversion ratio, measured by free cash flow as a percentage of revenue, improved as operating cash flow grew faster than revenue and capital expenditure declined relative to the prior quarter.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow turned from negative to positive. Versus the same quarter one year earlier, all metrics except capital expenditure were higher; capital expenditure was higher than a year ago.
Monitor the company's construction commitments, which the filing notes include an additional obligation of approximately three hundred sixty-five million dollars for the Richmond campus expansion.