Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially, driven by higher operating cash flow, but weakened compared to the same quarter a year ago. The filing context notes efficient working capital deployment and an increase in same-store sales versus the prior year.
- Revenue was stable sequentially, while operating cash flow rose, leading to a higher free cash flow margin despite increased capital spending. Compared to a year ago, revenue was higher but operating cash flow was lower, resulting in a weaker free cash flow margin.
- Sequentially, free cash flow and margin improved as operating cash flow increased, while capital expenditure was higher. Year-over-year, free cash flow and margin weakened as operating cash flow declined and capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$534.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$145.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$172.7M
Cash generated by operations before capital spending.
CapEx
$27.1M
Capital spending and related asset purchases.
FCF margin
13.5%
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 |
|---|---|---|---|---|---|
| 2023-09-10 | $1.0B | $179.8M | $21.3M | $158.5M | 15.4% |
| 2024-03-24 | $1.1B | $123.5M | $20.2M | $103.3M | 9.5% |
| 2024-06-16 | $1.1B | $150.7M | $23.5M | $127.2M | 11.6% |
| 2024-09-08 | $1.1B | $172.7M | $27.1M | $145.6M | 13.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 recovery
Operating cash flow improved from the prior quarter, contributing to a higher free cash flow margin despite increased capital expenditures. However, it remained below the level of the same quarter a year ago.
The improvement in operating cash flow was the primary factor behind the sequential increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, while operating cash flow rose, leading to a higher free cash flow margin despite increased capital spending. Compared to a year ago, revenue was higher but operating cash flow was lower, resulting in a weaker free cash flow margin.
Sequentially, free cash flow and margin improved as operating cash flow increased, while capital expenditure was higher. Year-over-year, free cash flow and margin weakened as operating cash flow declined and capital expenditure increased.
The trend in operating cash flow given its sequential improvement but year-over-year decline.