Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all rose compared to both the prior quarter and the same quarter last year. The free cash flow margin improved sequentially and year-over-year.
- Operating cash flow as a proportion of revenue was higher than the prior quarter and the year-ago quarter. Capital expenditure also increased, but free cash flow margin expanded, indicating a stronger conversion of revenue into free cash flow.
- Compared to the preceding quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were also higher, with the free cash flow margin showing a similar improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$95.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$24.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$34.2M
Cash generated by operations before capital spending.
CapEx
$9.5M
Capital spending and related asset purchases.
FCF margin
14.2%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $168.9M | $45.2M | $7.8M | $37.4M | 22.1% |
| 2023-09-30 | $167.3M | $27.4M | $8.0M | $19.4M | 11.6% |
| 2023-12-31 | $158.7M | $22.5M | $8.4M | $14.1M | 8.9% |
| 2024-03-31 | $174.2M | $34.2M | $9.5M | $24.7M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 521.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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.
Higher Operating Cash Flow
Operating cash flow increased from the prior quarter and from the same quarter last year, providing the primary lift to free cash flow. The rise in operating cash flow was the strongest observable factor in the cash flow improvement.
This higher operating cash flow more than offset the increase in capital expenditure, resulting in improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter and the year-ago quarter. Capital expenditure also increased, but free cash flow margin expanded, indicating a stronger conversion of revenue into free cash flow.
Compared to the preceding quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were also higher, with the free cash flow margin showing a similar improvement.
Capital expenditure rose in both comparisons; monitor whether this spending level supports or pressures future free cash flow generation.