Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than a year ago. Operating cash flow declined from the prior quarter, resulting in a lower free cash flow margin, though free cash flow was slightly above the year-ago level due to reduced capital expenditure.
- Revenue increased marginally from the prior quarter, but operating cash flow decreased, leading to a lower free cash flow and margin. Capital expenditure was reduced compared to both the prior quarter and the year-ago period, which helped support free cash flow. Based on the filing, the increase in operating cash flow for the nine-month period was primarily due to higher cash received from customers.
- Compared to the prior quarter, operating cash flow, free cash flow, and margin all weakened. Versus the same quarter last year, revenue was slightly lower, operating cash flow was stable, and free cash flow improved modestly with a higher margin, driven by reduced capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$696.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$153.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$159.0M
Cash generated by operations before capital spending.
CapEx
$5.8M
Capital spending and related asset purchases.
FCF margin
22.0%
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 | $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% |
| 2024-06-30 | $695.5M | $159.0M | $5.8M | $153.1M | 22.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 106.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 contraction
Operating cash flow decreased from the prior quarter while revenue increased slightly, indicating a change in cash conversion efficiency. This decline was the primary factor behind the lower free cash flow margin.
If operating cash flow does not recover, free cash flow margin could remain under pressure in the near term.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased marginally from the prior quarter, but operating cash flow decreased, leading to a lower free cash flow and margin. Capital expenditure was reduced compared to both the prior quarter and the year-ago period, which helped support free cash flow. Based on the filing, the increase in operating cash flow for the nine-month period was primarily due to higher cash received from customers.
Compared to the prior quarter, operating cash flow, free cash flow, and margin all weakened. Versus the same quarter last year, revenue was slightly lower, operating cash flow was stable, and free cash flow improved modestly with a higher margin, driven by reduced capital spending.
Monitor whether operating cash flow can rebound after the decline from the prior quarter, as it directly impacts free cash flow generation.