Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter, the company generated higher revenue and free cash flow compared to both the prior quarter and the same quarter last year, though the free cash flow margin weakened relative to both periods.
- Revenue increased while operating cash flow improved from a year ago but decreased from the prior quarter. Capital expenditure rose compared to last year but was stable relative to the prior quarter, resulting in free cash flow that was higher year over year but lower sequentially. The free cash flow margin declined from both comparison periods, indicating a less efficient cash conversion.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, with a weakened margin. Versus the same quarter last year, all metrics improved except the margin, which declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$555.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$121.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$146.6M
Cash generated by operations before capital spending.
CapEx
$25.0M
Capital spending and related asset purchases.
FCF margin
7.9%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.3B | $125.4M | $24.6M | $100.8M | 7.8% |
| 2023-09-30 | $1.4B | $214.2M | $28.4M | $185.8M | 13.5% |
| 2023-12-31 | $1.4B | $173.0M | $25.3M | $147.7M | 10.9% |
| 2024-03-31 | $1.5B | $146.6M | $25.0M | $121.6M | 7.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $10.9M | 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
Revenue increased from both the prior quarter and the year-ago quarter, contributing to higher absolute free cash flow year over year. However, the free cash flow margin contracted, suggesting that cash generation did not keep pace with revenue growth.
Sustained revenue growth without margin improvement may pressure free cash flow efficiency in future quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow improved from a year ago but decreased from the prior quarter. Capital expenditure rose compared to last year but was stable relative to the prior quarter, resulting in free cash flow that was higher year over year but lower sequentially. The free cash flow margin declined from both comparison periods, indicating a less efficient cash conversion.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, with a weakened margin. Versus the same quarter last year, all metrics improved except the margin, which declined.
Monitor changes in billed accounts receivable, which increased from the prior quarter end, as this could influence future operating cash flow.