Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially and year-over-year, while operating cash flow and free cash flow declined from the prior quarter but remained ahead of the same quarter last year. Free cash flow margin narrowed relative to the previous quarter but widened compared to the prior year.
- Cash conversion was mixed: operating cash flow as a percentage of revenue declined sequentially, and capital expenditure rose, resulting in a lower free cash flow margin versus the prior quarter. Compared to the prior year, the free cash flow margin improved as revenue growth outpaced the increase in both operating cash flow and capital expenditure.
- Relative to the immediately preceding quarter, revenue improved but operating cash flow and free cash flow weakened, while capital expenditure increased. Compared to the same quarter one year earlier, all metrics strengthened: revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$326.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$340.5M
Cash generated by operations before capital spending.
CapEx
$14.4M
Capital spending and related asset purchases.
FCF margin
27.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-30 | $1.1B | $355.2M | $5.0M | $350.2M | 30.5% |
| 2024-12-31 | $1.2B | $340.5M | $14.4M | $326.1M | 27.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 164.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Cash flow growth year-over-year
Compared to the prior year, operating cash flow, free cash flow, and free cash flow margin all improved, alongside higher revenue.
The year-over-year improvement in cash flow metrics provides a favorable comparison, although the sequential decline in free cash flow and margin highlights the importance of monitoring near-term capital spending and operating cash flow trends.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was mixed: operating cash flow as a percentage of revenue declined sequentially, and capital expenditure rose, resulting in a lower free cash flow margin versus the prior quarter. Compared to the prior year, the free cash flow margin improved as revenue growth outpaced the increase in both operating cash flow and capital expenditure.
Relative to the immediately preceding quarter, revenue improved but operating cash flow and free cash flow weakened, while capital expenditure increased. Compared to the same quarter one year earlier, all metrics strengthened: revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in capital expenditure, which increased compared to both the prior quarter and the prior year, to assess its impact on free cash flow generation.