Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from negative a year ago and improved sharply from the prior quarter. The improvement was driven by stronger operating cash flow and a modest decline in capital spending compared to the previous period.
- Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow was higher than both periods, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The result was a free cash flow margin that improved from negative to positive year-over-year and increased from the prior quarter.
- Compared to the previous quarter, free cash flow was higher, and free cash flow margin improved. Compared to the same quarter one year earlier, free cash flow turned positive from negative, and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$145.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$65.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$87.6M
Cash generated by operations before capital spending.
CapEx
$22.1M
Capital spending and related asset purchases.
FCF margin
14.8%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $396.5M | $44.0M | $15.7M | $28.3M | 7.1% |
| 2023-09-30 | $432.7M | $56.0M | $20.1M | $35.9M | 8.3% |
| 2023-12-31 | $509.8M | $45.2M | $29.3M | $15.9M | 3.1% |
| 2024-03-31 | $441.7M | $87.6M | $22.1M | $65.5M | 14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | 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 improvement
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, contributing significantly to the positive free cash flow.
This driver was the primary factor behind the quarter's free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow was higher than both periods, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The result was a free cash flow margin that improved from negative to positive year-over-year and increased from the prior quarter.
Compared to the previous quarter, free cash flow was higher, and free cash flow margin improved. Compared to the same quarter one year earlier, free cash flow turned positive from negative, and margin improved.
The level of capital expenditure relative to operating cash flow, as well as the company's debt leverage ratio disclosed in the filing, are items to monitor.