Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved from the prior quarter and the year-ago period. Free cash flow margin was slightly lower than the prior quarter but remained higher than the year-ago level.
- Operating cash flow increased relative to revenue, resulting in a free cash flow margin that was moderately higher than a year ago but slightly below the immediate prior quarter. Capital expenditure was minimal in each period, so changes in free cash flow were largely driven by operating cash flow trends.
- Compared with the prior quarter, revenue was higher, operating cash flow increased, and free cash flow rose, though the margin weakened slightly. Versus the same quarter a year earlier, all metrics including margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$457.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$460.3M
Cash generated by operations before capital spending.
CapEx
$3.1M
Capital spending and related asset purchases.
FCF margin
55.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $827.5M | $460.3M | $3.1M | $457.2M | 55.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 578.7% | 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 expansion
Operating cash flow improved from both the prior quarter and the year-ago period, and the company reported positive cash flows from operations for the fiscal year. The filing notes that operating cash flows may fluctuate, but the current level supported a higher free cash flow amount this quarter.
This quarter's free cash flow was the highest among the three periods shown, driven by stronger operating cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, resulting in a free cash flow margin that was moderately higher than a year ago but slightly below the immediate prior quarter. Capital expenditure was minimal in each period, so changes in free cash flow were largely driven by operating cash flow trends.
Compared with the prior quarter, revenue was higher, operating cash flow increased, and free cash flow rose, though the margin weakened slightly. Versus the same quarter a year earlier, all metrics including margin were higher.
Monitor operating cash flow growth relative to revenue growth to see if the slight margin compression observed from the prior quarter persists.