Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to both the prior quarter and the same quarter last year, driven by stronger operating cash flow. Revenue was higher in both comparisons, supporting the cash conversion performance.
- Operating cash flow grew faster than revenue, resulting in a higher free cash flow margin. Capital expenditure was also higher, but the increase in operating cash flow more than offset it.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter last year, all metrics were higher, with the margin showing the largest relative gain.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$665.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$213.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$279.4M
Cash generated by operations before capital spending.
CapEx
$66.1M
Capital spending and related asset purchases.
FCF margin
21.2%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $975.0M | $269.2M | $50.4M | $218.8M | 22.4% |
| 2023-12-31 | $1.0B | $133.6M | $52.5M | $81.1M | 7.8% |
| 2024-03-31 | $921.0M | $209.2M | $56.9M | $152.3M | 16.5% |
| 2024-06-30 | $1.0B | $279.4M | $66.1M | $213.3M | 21.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 148.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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 Strength
Operating cash flow increased more than proportionally to revenue, lifting the free cash flow margin to its highest level among the three periods shown. This was the primary factor behind the improved cash conversion.
The stronger operating cash flow directly boosted free cash flow and margin, reinforcing the company's liquidity position as noted in the filing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue, resulting in a higher free cash flow margin. Capital expenditure was also higher, but the increase in operating cash flow more than offset it.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter last year, all metrics were higher, with the margin showing the largest relative gain.
Monitor capital expenditure levels, as they were higher in the current quarter compared to both the prior quarter and the same quarter last year.