Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved meaningfully this quarter, driven by stronger cash generation from operations. The free cash flow margin expanded sharply compared to both the prior quarter and the same quarter a year ago.
- Revenue was slightly lower than recent periods, but operating cash flow increased substantially, leading to a much higher free cash flow. Capital expenditure remained modest, further supporting free cash flow.
- Compared to the immediate preceding quarter, free cash flow and margin both improved significantly. Versus the same quarter one year earlier, the improvement was even more pronounced, with operating cash flow more than offsetting the lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$692.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$212.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$221.6M
Cash generated by operations before capital spending.
CapEx
$9.5M
Capital spending and related asset purchases.
FCF margin
31.1%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $702.6M | $165.1M | $15.0M | $150.0M | 21.4% |
| 2023-09-30 | $707.0M | $189.8M | $15.4M | $174.4M | 24.7% |
| 2023-12-31 | $692.6M | $165.3M | $9.0M | $156.3M | 22.6% |
| 2024-03-31 | $681.4M | $221.6M | $9.5M | $212.2M | 31.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 178.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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.
Strong operating cash flow
Operating cash flow increased markedly from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. According to the filing, this improvement was primarily driven by higher cash collections from customers.
The improvement in operating cash flow more than compensated for slightly lower revenue, resulting in a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than recent periods, but operating cash flow increased substantially, leading to a much higher free cash flow. Capital expenditure remained modest, further supporting free cash flow.
Compared to the immediate preceding quarter, free cash flow and margin both improved significantly. Versus the same quarter one year earlier, the improvement was even more pronounced, with operating cash flow more than offsetting the lower revenue.
Monitor revenue trends, as they have declined sequentially and year-over-year.