Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the preceding quarter and the same quarter one year earlier. Free cash flow margin improved relative to the prior quarter but was slightly lower than the year-ago period.
- Operating cash flow increased relative to revenue, leading to a higher free cash flow margin compared to the prior quarter. Capital expenditure remained modest, supporting the conversion of revenue into free cash flow.
- Compared to the prior quarter, revenue and operating cash flow rose, and free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were also higher, but free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$835.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$257.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$265.2M
Cash generated by operations before capital spending.
CapEx
$7.8M
Capital spending and related asset purchases.
FCF margin
34.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-30 | $690.0M | $228.7M | $8.4M | $220.3M | 31.9% |
| 2024-12-31 | $737.7M | $265.2M | $7.8M | $257.5M | 34.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 564.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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.
Sequential free cash flow margin improvement
Free cash flow margin was higher than the prior quarter, reflecting stronger cash generation relative to revenue. Operating cash flow growth outpaced revenue growth, while capital expenditure remained stable.
The higher margin supported a larger absolute free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, leading to a higher free cash flow margin compared to the prior quarter. Capital expenditure remained modest, supporting the conversion of revenue into free cash flow.
Compared to the prior quarter, revenue and operating cash flow rose, and free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were also higher, but free cash flow margin was slightly lower.
Monitor the potential impact of macroeconomic conditions on future business performance, as discussed in the filing.