Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to both the immediately preceding quarter and the same quarter one year earlier, driven by higher revenue and operating cash flow. Capital expenditure remained low relative to operating cash flow, supporting the conversion.
- Revenue increased from the prior quarter and from a year ago, while operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was stable, allowing most operating cash flow to convert into free cash flow.
- 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, and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$696.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$141.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$144.2M
Cash generated by operations before capital spending.
CapEx
$2.9M
Capital spending and related asset purchases.
FCF margin
20.8%
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 | $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% |
| 2024-06-30 | $678.1M | $144.2M | $2.9M | $141.3M | 20.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.4% | 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 rose sequentially and year-over-year, outpacing the revenue growth rate, which led to margin improvement. The filing notes positive cash flow from operations for the six-month period.
Stronger operating cash flow was the primary observable factor behind the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and from a year ago, while operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was stable, allowing most operating cash flow to convert into free cash flow.
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, and the margin strengthened.
Monitor the trend in deferred revenue, which increased from year-end levels, as it represents future cash flow potential.