Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened year over year but weakened slightly from the preceding quarter.
- Operating cash flow was higher than capital expenditure, producing positive free cash flow. The free cash flow margin indicates that a notable portion of revenue was converted into free cash flow.
- Revenue increased from both the prior quarter and the same quarter last year, while operating cash flow was stable relative to the prior quarter but improved from a year ago. Free cash flow was slightly lower than the preceding quarter but significantly higher than the same quarter the prior year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$181.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$64.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$86.8M
Cash generated by operations before capital spending.
CapEx
$22.5M
Capital spending and related asset purchases.
FCF margin
13.2%
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 | $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% |
| 2024-06-30 | $488.5M | $86.8M | $22.5M | $64.3M | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 34.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Revenue Growth
Revenue increased compared to both the prior quarter and the year-ago period. This supported a higher absolute free cash flow relative to the same quarter last year.
Higher revenue contributed to the improvement in free cash flow year over year, even as margin narrowed sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, producing positive free cash flow. The free cash flow margin indicates that a notable portion of revenue was converted into free cash flow.
Revenue increased from both the prior quarter and the same quarter last year, while operating cash flow was stable relative to the prior quarter but improved from a year ago. Free cash flow was slightly lower than the preceding quarter but significantly higher than the same quarter the prior year.
Monitor capital expenditure trends relative to operating cash flow, as free cash flow shifted slightly despite steady investment levels.