Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same period last year, but free cash flow and margin weakened due to a lower operating cash flow conversion. The decline in operating cash flow was the primary driver of the reduced free cash flow.
- Revenue rose while operating cash flow fell, causing free cash flow to decline and margin to narrow. Capital expenditure was slightly higher than both comparison periods, further reducing free cash flow from the already lower operating cash flow.
- Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were substantially lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$75.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$17.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$27.2M
Cash generated by operations before capital spending.
CapEx
$9.9M
Capital spending and related asset purchases.
FCF margin
9.8%
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 | $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% |
| 2024-06-30 | $177.4M | $27.2M | $9.9M | $17.4M | 9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1322.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | 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.
Operating Cash Flow Decline
Operating cash flow decreased while revenue increased, resulting in a lower free cash flow and margin. The company's liquidity position was affected by share repurchases and capital spending, as noted in the filing.
The reduced cash conversion efficiency is a key factor to watch for future free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell, causing free cash flow to decline and margin to narrow. Capital expenditure was slightly higher than both comparison periods, further reducing free cash flow from the already lower operating cash flow.
Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were substantially lower, and capital expenditure was higher.
Monitor the trajectory of operating cash flow, as its decline relative to revenue was the main factor behind the weakened free cash flow and margin.