Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased sequentially as operating cash flow declined even though revenue rose slightly. Compared to the same quarter last year, free cash flow was marginally lower but the margin improved.
- Operating cash flow fell relative to revenue, leading to a weaker cash conversion rate. Lower capital expenditure partly offset the decline in free cash flow.
- Revenue was higher than the preceding quarter but lower than the same quarter one year earlier. Free cash flow margin weakened sequentially while improving compared to the prior year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$640.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$117.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$133.6M
Cash generated by operations before capital spending.
CapEx
$15.9M
Capital spending and related asset purchases.
FCF margin
14.6%
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 | $793.4M | $226.6M | $20.1M | $206.5M | 26.0% |
| 2023-12-31 | $788.9M | $201.0M | $21.6M | $179.4M | 22.7% |
| 2024-03-31 | $800.5M | $156.6M | $20.0M | $136.6M | 17.1% |
| 2024-06-30 | $807.2M | $133.6M | $15.9M | $117.7M | 14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$604.2M | 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
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter, exceeding the magnitude of revenue changes. This decline was the primary factor behind the sequential drop in free cash flow.
The reduction in operating cash flow constrained free cash flow generation even with lower capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell relative to revenue, leading to a weaker cash conversion rate. Lower capital expenditure partly offset the decline in free cash flow.
Revenue was higher than the preceding quarter but lower than the same quarter one year earlier. Free cash flow margin weakened sequentially while improving compared to the prior year.
Monitor the trajectory of operating cash flow, as it declined from both the prior quarter and the year-ago period.