Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year, and free cash flow improved year-over-year but declined sequentially. The free cash flow margin weakened from the previous quarter yet remained above the year-ago level.
- Operating cash flow and free cash flow both increased from the year-ago period, with capital expenditure slightly lower, resulting in a higher free cash flow margin. However, compared to the prior quarter, operating cash flow decreased and capital expenditure increased, leading to a lower free cash flow margin.
- Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, causing the free cash flow margin to weaken. Versus the same quarter one year earlier, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$800.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$194.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$202.8M
Cash generated by operations before capital spending.
CapEx
$8.1M
Capital spending and related asset purchases.
FCF margin
25.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $766.5M | $202.8M | $8.1M | $194.7M | 25.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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.
Year-over-year cash flow improvement
Free cash flow increased compared to the same quarter last year, supported by higher cash received from customers as noted in the filing. Operating cash flow rose from the year-ago period, and capital expenditure was slightly lower, contributing to the improvement.
This improvement strengthens the company's cash generation capability compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and free cash flow both increased from the year-ago period, with capital expenditure slightly lower, resulting in a higher free cash flow margin. However, compared to the prior quarter, operating cash flow decreased and capital expenditure increased, leading to a lower free cash flow margin.
Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, causing the free cash flow margin to weaken. Versus the same quarter one year earlier, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor the sequential decline in operating cash flow and free cash flow margin, which weakened despite revenue growth.