Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but was higher than the same quarter last year. Operating cash flow and free cash flow improved significantly compared to both prior periods, with the free cash flow margin reaching its strongest level among the three quarters shown.
- Cash conversion strengthened as operating cash flow exceeded capital expenditure by a wider margin than in the preceding quarter and the year-ago quarter, resulting in a higher free cash flow relative to revenue.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were higher, with the largest improvement in free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$99.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$35.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$42.6M
Cash generated by operations before capital spending.
CapEx
$6.7M
Capital spending and related asset purchases.
FCF margin
22.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $161.7M | $42.6M | $6.7M | $35.9M | 22.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 279.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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 Strength
Operating cash flow increased from both the prior quarter and the year-ago quarter, while capital expenditure decreased. This combination drove a higher absolute free cash flow and a significantly improved free cash flow margin.
The quarter's cash generation efficiency, measured by free cash flow margin, was the highest among the three periods shown.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as operating cash flow exceeded capital expenditure by a wider margin than in the preceding quarter and the year-ago quarter, resulting in a higher free cash flow relative to revenue.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were higher, with the largest improvement in free cash flow margin.
Monitor the trend in capital expenditure, which was lower than both prior periods, to see if it sustains at a reduced level.