Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue grew sequentially and year-over-year, while free cash flow and margin weakened compared to the prior quarter and the same quarter last year. Operating cash flow decreased from both comparison periods, though capital expenditure was lower.
- With higher revenue but lower operating cash flow, the conversion from revenue to cash declined. Free cash flow margin fell compared to the prior quarter and the year-ago quarter, reflecting a weaker cash generation rate.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin were lower despite higher revenue. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, while margin also decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$641.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$126.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$129.6M
Cash generated by operations before capital spending.
CapEx
$2.7M
Capital spending and related asset purchases.
FCF margin
20.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $533.3M | $90.2M | $3.9M | $86.3M | 16.2% |
| 2023-09-30 | $558.2M | $133.4M | $1.6M | $131.9M | 23.6% |
| 2023-12-31 | $608.4M | $301.2M | $4.9M | $296.3M | 48.7% |
| 2024-03-31 | $634.3M | $129.6M | $2.7M | $126.9M | 20.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Operating Cash Flow Decline
Operating cash flow was lower than both the prior quarter and the same quarter a year ago, while revenue increased. This shift in cash conversion is the most observable driver of the quarter's cash flow performance.
Weaker operating cash flow directly reduced free cash flow and compressed margin, despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With higher revenue but lower operating cash flow, the conversion from revenue to cash declined. Free cash flow margin fell compared to the prior quarter and the year-ago quarter, reflecting a weaker cash generation rate.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin were lower despite higher revenue. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, while margin also decreased.
Monitor the trend in operating cash flow, as it weakened sequentially and year-over-year despite revenue growth.