Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow margin improved compared to a year ago but weakened sequentially.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure rose sequentially and year-over-year, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year.
- Compared to the prior quarter, revenue was higher while operating cash flow and free cash flow were lower, causing a weakened free cash flow margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$629.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$109.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$141.0M
Cash generated by operations before capital spending.
CapEx
$31.5M
Capital spending and related asset purchases.
FCF margin
21.6%
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 | $474.9M | $175.9M | $27.1M | $148.8M | 31.3% |
| 2023-12-31 | $454.0M | $153.3M | $13.8M | $139.5M | 30.7% |
| 2024-03-31 | $457.9M | $248.1M | $16.0M | $232.1M | 50.7% |
| 2024-06-30 | $507.4M | $141.0M | $31.5M | $109.5M | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.2% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the same quarter last year, providing a larger base for cash generation.
Higher revenue supported a year-over-year improvement in free cash flow despite increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure rose sequentially and year-over-year, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year.
Compared to the prior quarter, revenue was higher while operating cash flow and free cash flow were lower, causing a weakened free cash flow margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved free cash flow margin.
Monitor the trend in capital expenditure, which increased both sequentially and year-over-year.