Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose and operating cash flow increased sharply, leading to a higher free cash flow margin compared with both the prior quarter and the same quarter last year. The conversion of revenue into cash was strong, supported by stable capital expenditure.
- Operating cash flow grew faster than revenue, and capital expenditure remained minimal, resulting in a free cash flow margin that expanded from the prior quarter and from the year-ago period.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Relative to the same quarter one year earlier, all metrics were higher, with a notably stronger cash conversion.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$624.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$224.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$226.5M
Cash generated by operations before capital spending.
CapEx
$1.8M
Capital spending and related asset purchases.
FCF margin
49.5%
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 | $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% |
| 2024-09-30 | $453.8M | $226.5M | $1.8M | $224.7M | 49.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth and Cash Conversion
Revenue was higher sequentially and year-over-year, and operating cash flow increased at a stronger pace, driving free cash flow and the margin to improved levels.
The combination of top-line growth and efficient cash collection strengthened free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue, and capital expenditure remained minimal, resulting in a free cash flow margin that expanded from the prior quarter and from the year-ago period.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Relative to the same quarter one year earlier, all metrics were higher, with a notably stronger cash conversion.
Capital expenditure remained very low; any significant increase could alter the free cash flow profile.