Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved for the quarter, supported by higher revenue and operating cash flow. Capital expenditure remained steady relative to both the prior quarter and the year-ago period.
- Revenue increased, driving operating cash flow higher and resulting in a stronger free cash flow. The free cash flow margin widened as operating cash flow grew faster than capital expenditure.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Relative to the same quarter last year, these metrics also showed improvement, with operating cash flow and free cash flow rising notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$621.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$166.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$189.9M
Cash generated by operations before capital spending.
CapEx
$23.4M
Capital spending and related asset purchases.
FCF margin
9.2%
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 | $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% |
| 2024-06-30 | $1.8B | $189.9M | $23.4M | $166.5M | 9.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $108.4M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Growth
The quarter’s free cash flow improvement was most directly driven by higher operating cash flow, which increased from both the prior quarter and the year-ago quarter. This occurred with only minor changes in capital expenditure.
Sustained operating cash flow strength would continue to support free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, driving operating cash flow higher and resulting in a stronger free cash flow. The free cash flow margin widened as operating cash flow grew faster than capital expenditure.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Relative to the same quarter last year, these metrics also showed improvement, with operating cash flow and free cash flow rising notably.
Monitor working capital trends, as the filing notes the business relies primarily on working capital to fund project costs.