Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to the prior quarter, while free cash flow margin was slightly lower. Relative to the same quarter last year, cash generation improved markedly as operating cash flow strengthened and capital expenditure decreased.
- Operating cash flow was significantly higher than capital expenditure, resulting in a high free cash flow conversion rate. The free cash flow margin was elevated, indicating efficient cash generation from revenue.
- Compared to the immediately preceding quarter, revenue was stable, operating cash flow was slightly lower, capital expenditure declined, and free cash flow and its margin were marginally weaker. Compared to the same quarter one year earlier, revenue improved, operating cash flow increased substantially, capital expenditure was lower, and free cash flow and margin improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$292.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$294.8M
Cash generated by operations before capital spending.
CapEx
$2.8M
Capital spending and related asset purchases.
FCF margin
26.0%
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 | $1.1B | $281.6M | $9.4M | $272.2M | 25.4% |
| 2023-12-31 | $1.1B | $297.7M | $4.0M | $293.7M | 26.7% |
| 2024-03-31 | $1.1B | $297.2M | $4.4M | $292.8M | 26.4% |
| 2024-06-30 | $1.1B | $294.8M | $2.8M | $292.0M | 26.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 199.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong year-over-year cash flow improvement
Operating cash flow rose substantially compared to the same quarter last year, while capital expenditure decreased, leading to a significantly higher free cash flow margin. Revenue also increased year over year.
This favorable cash flow trend strengthened the company's liquidity position and supported capital allocation flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly higher than capital expenditure, resulting in a high free cash flow conversion rate. The free cash flow margin was elevated, indicating efficient cash generation from revenue.
Compared to the immediately preceding quarter, revenue was stable, operating cash flow was slightly lower, capital expenditure declined, and free cash flow and its margin were marginally weaker. Compared to the same quarter one year earlier, revenue improved, operating cash flow increased substantially, capital expenditure was lower, and free cash flow and margin improved significantly.
Monitor whether operating cash flow can sustain its elevated level relative to revenue for the coming quarters.