Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased but free cash flow margin declined compared to both the prior quarter and the same quarter last year, reflecting a weaker cash conversion rate. The sequential drop in operating cash flow more than offset the benefit of lower capital expenditure.
- Revenue rose while operating cash flow fell, leading to a lower free cash flow and a narrower free cash flow margin. Capital expenditure decreased, but the reduction was not enough to offset the decline in operating cash flow.
- Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter a year ago, revenue and both operating and free cash flow were higher, yet the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$714.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$160.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$164.4M
Cash generated by operations before capital spending.
CapEx
$4.4M
Capital spending and related asset purchases.
FCF margin
24.8%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $547.5M | $152.8M | $6.1M | $146.7M | 26.8% |
| 2023-12-31 | $589.6M | $220.2M | $10.4M | $209.8M | 35.6% |
| 2024-03-31 | $611.3M | $212.3M | $14.2M | $198.1M | 32.4% |
| 2024-06-30 | $645.3M | $164.4M | $4.4M | $160.0M | 24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 365.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Operating Cash Flow Conversion
Revenue increased but operating cash flow declined, driving the sequential drop in free cash flow margin. The relationship between higher revenue and lower cash from operations is the primary observable factor.
The weaker cash conversion efficiency may indicate changes in timing of collections or payments, though no specific causes are stated.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell, leading to a lower free cash flow and a narrower free cash flow margin. Capital expenditure decreased, but the reduction was not enough to offset the decline in operating cash flow.
Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter a year ago, revenue and both operating and free cash flow were higher, yet the free cash flow margin was lower.
Monitor the impact of macroeconomic conditions on customer usage growth, as noted in the filing's risk factors.