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 the prior quarter and was also higher than the same quarter a year earlier, driven by a strong increase in operating cash flow. Capital expenditure rose but remained modest relative to operating cash flow, resulting in an expanded free cash flow margin.
- Revenue increased moderately, while operating cash flow rose substantially, leading to a much higher free cash flow margin. Capital expenditure was higher than the prior quarter but still represented a small share of operating cash flow, supporting strong cash conversion.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with a notably improved free cash flow margin. Versus the same quarter a year earlier, revenue was slightly higher and operating cash flow and free cash flow were also higher, with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$509.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$208.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$231.8M
Cash generated by operations before capital spending.
CapEx
$23.8M
Capital spending and related asset purchases.
FCF margin
37.2%
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 | $571.4M | $157.1M | $7.6M | $149.5M | 26.2% |
| 2023-12-31 | $545.7M | $81.5M | $16.8M | $64.7M | 11.9% |
| 2024-03-31 | $538.6M | $97.6M | $9.9M | $87.7M | 16.3% |
| 2024-06-30 | $559.9M | $231.8M | $23.8M | $208.0M | 37.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 205.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.7M | 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 Strength
Operating cash flow increased substantially from both the prior quarter and the same quarter a year earlier, far outpacing the change in revenue. This was the primary driver of the higher free cash flow and margin.
The strong operating cash flow enabled significant free cash flow generation despite a modest increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased moderately, while operating cash flow rose substantially, leading to a much higher free cash flow margin. Capital expenditure was higher than the prior quarter but still represented a small share of operating cash flow, supporting strong cash conversion.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with a notably improved free cash flow margin. Versus the same quarter a year earlier, revenue was slightly higher and operating cash flow and free cash flow were also higher, with an improved margin.
Monitor the sustainability of operating cash flow levels, as the company noted that collections of annual maintenance billings and lower income tax payments contributed to the current period's increase.