Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow rose compared to the prior quarter and the year-ago quarter, while capital expenditure was slightly lower than the prior quarter. Free cash flow increased and its margin improved relative to both comparison periods.
- Revenue was slightly lower than the prior quarter but similar to the year-ago quarter. Operating cash flow improved, leading to higher free cash flow and a stronger free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower, but operating cash flow and free cash flow were higher, resulting in an improved margin. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow and free cash flow were higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$78.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$22.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$31.6M
Cash generated by operations before capital spending.
CapEx
$9.6M
Capital spending and related asset purchases.
FCF margin
13.0%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $168.6M | $31.6M | $9.6M | $22.0M | 13.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 198.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | 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 Improvement
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, lifting free cash flow even as revenue was relatively stable.
The improvement in operating cash flow drove a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but similar to the year-ago quarter. Operating cash flow improved, leading to higher free cash flow and a stronger free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower, but operating cash flow and free cash flow were higher, resulting in an improved margin. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow and free cash flow were higher, and the margin improved.
The company noted that cash and cash equivalents decreased primarily due to stock repurchases and purchases of property and equipment, partially offset by operating cash flows, which is a trend to monitor.