Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue also increased over both periods, supporting a stronger cash conversion profile.
- Operating cash flow rose substantially from the previous quarter and from a year earlier, while capital expenditure remained minimal. This resulted in a free cash flow margin that was higher than both comparison periods, indicating improved cash conversion from revenue.
- Compared to the immediately preceding quarter, revenue and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing notable increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$980.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$415.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$419.8M
Cash generated by operations before capital spending.
CapEx
$4.0M
Capital spending and related asset purchases.
FCF margin
57.3%
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 | $608.4M | $301.2M | $4.9M | $296.3M | 48.7% |
| 2024-03-31 | $634.3M | $129.6M | $2.7M | $126.9M | 20.0% |
| 2024-06-30 | $678.1M | $144.2M | $2.9M | $141.3M | 20.8% |
| 2024-09-30 | $725.5M | $419.8M | $4.0M | $415.8M | 57.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 289.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 Growth
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, driving a large increase in free cash flow. This improvement occurred alongside higher revenue, with capital expenditure remaining low.
The elevated operating cash flow directly boosted free cash flow and the free cash flow margin, strengthening the company's cash generation profile.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose substantially from the previous quarter and from a year earlier, while capital expenditure remained minimal. This resulted in a free cash flow margin that was higher than both comparison periods, indicating improved cash conversion from revenue.
Compared to the immediately preceding quarter, revenue and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing notable increases.
Monitor the trend in operating cash flow, as its current level is the primary driver of free cash flow strength.