Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened compared to both the prior quarter and the same quarter last year. Revenue was lower sequentially but higher year-over-year, while operating cash flow decreased on both bases.
- Cash conversion from revenue into free cash flow produced a margin that was lower than the prior quarter and lower than the same quarter a year ago. This resulted from operating cash flow not fully offsetting the sequential decline in revenue, while capital expenditure was slightly higher than the prior quarter but essentially stable versus the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all moved lower. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$472.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$73.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$89.6M
Cash generated by operations before capital spending.
CapEx
$16.7M
Capital spending and related asset purchases.
FCF margin
12.7%
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 | $538.6M | $97.6M | $9.9M | $87.7M | 16.3% |
| 2024-06-30 | $559.9M | $231.8M | $23.8M | $208.0M | 37.2% |
| 2024-09-30 | $601.0M | $116.9M | $12.8M | $104.1M | 17.3% |
| 2024-12-31 | $573.8M | $89.6M | $16.7M | $73.0M | 12.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$124.3M | 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 decline
The strongest observable driver was the lower operating cash flow, which fell from both the prior quarter and the same quarter one year earlier. The filing context points to a decrease in the change in receivables as a primary factor for the decline in operating cash flow for the six-month period.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue into free cash flow produced a margin that was lower than the prior quarter and lower than the same quarter a year ago. This resulted from operating cash flow not fully offsetting the sequential decline in revenue, while capital expenditure was slightly higher than the prior quarter but essentially stable versus the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all moved lower. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin all improved.
Monitor whether operating cash flow can stabilize after the decrease from the prior quarter and the year-ago period noted in the filing context related to the change in receivables.