Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from both the preceding quarter and the year-ago quarter. The improvement reflected higher revenue and a stronger conversion of revenue into operating cash flow.
- Operating cash flow as a share of revenue was higher than in the two comparison periods, reflecting improved cash conversion. Capital expenditure was modest, supporting a high free cash flow margin.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin was improved. Versus the same quarter one year earlier, all metrics also showed improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$562.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$211.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$213.3M
Cash generated by operations before capital spending.
CapEx
$1.7M
Capital spending and related asset purchases.
FCF margin
47.2%
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 | $389.7M | $164.0M | $1.1M | $163.0M | 41.8% |
| 2023-12-31 | $382.1M | $122.1M | $1.4M | $120.8M | 31.6% |
| 2024-03-31 | $433.8M | $71.0M | $4.0M | $67.0M | 15.4% |
| 2024-06-30 | $447.8M | $213.3M | $1.7M | $211.6M | 47.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 167.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | 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 rose substantially compared with both the prior quarter and the year-ago quarter, while revenue also grew. This combination lifted free cash flow and margin.
Cash generation from operations is the primary factor behind the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than in the two comparison periods, reflecting improved cash conversion. Capital expenditure was modest, supporting a high free cash flow margin.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin was improved. Versus the same quarter one year earlier, all metrics also showed improvement.
Capital expenditure increased versus the year-ago quarter, though it remained small relative to operating cash flow.