Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin reached its highest level among the three periods.
- Revenue grew sequentially and year-over-year, while operating cash flow expanded at a faster pace, leading to a higher free cash flow margin. Capital expenditure remained modest, further supporting cash conversion.
- Compared to the prior quarter, free cash flow margin improved from the prior level, reflecting stronger cash generation relative to revenue. Versus the same quarter last year, both operating cash flow and free cash flow increased while capital expenditure declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$762.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$240.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$246.5M
Cash generated by operations before capital spending.
CapEx
$6.1M
Capital spending and related asset purchases.
FCF margin
32.2%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $746.7M | $246.5M | $6.1M | $240.4M | 32.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.5% | 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.
Improved Operating Cash Flow and Controlled Capital Spending
Operating cash flow increased substantially relative to both the prior quarter and the same quarter last year, while capital spending was significantly lower than the year-ago period. This combination drove a sharp improvement in free cash flow and margin.
The enhanced cash generation capability strengthens the company's financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew sequentially and year-over-year, while operating cash flow expanded at a faster pace, leading to a higher free cash flow margin. Capital expenditure remained modest, further supporting cash conversion.
Compared to the prior quarter, free cash flow margin improved from the prior level, reflecting stronger cash generation relative to revenue. Versus the same quarter last year, both operating cash flow and free cash flow increased while capital expenditure declined.
Monitor whether capital expenditure remains at the low level seen in the current quarter, as it has contributed to free cash flow growth.