Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from both the prior quarter and the same quarter last year, driven by higher operating cash flow and stable capital spending. The free cash flow margin also increased compared to both periods.
- Cash conversion strengthened as operating cash flow rose faster than revenue, while capital expenditure declined slightly relative to the prior quarter. Free cash flow margin widened, reflecting improved efficiency in converting revenue into free cash.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, while revenue remained stable. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved, with capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$715.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$280.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$302.2M
Cash generated by operations before capital spending.
CapEx
$22.1M
Capital spending and related asset purchases.
FCF margin
15.5%
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 | $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% |
| 2024-09-30 | $1.8B | $302.2M | $22.1M | $280.1M | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 191.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $347.2M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Operating Cash Flow
Operating cash flow rose substantially from both the prior quarter and the same quarter last year, providing the primary lift to free cash flow. Capital expenditure remained relatively stable, further supporting the increase.
Free cash flow margin improved notably, indicating stronger cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as operating cash flow rose faster than revenue, while capital expenditure declined slightly relative to the prior quarter. Free cash flow margin widened, reflecting improved efficiency in converting revenue into free cash.
Compared to the immediately preceding quarter, free cash flow and margin were higher, while revenue remained stable. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved, with capital expenditure lower.
Monitor capital expenditure trends, as the current level is lower than both the prior quarter and the year-ago period.