Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year, driving a higher free cash flow margin. The company's liquidity position remained strong, with cash and cash equivalents rising and the debt-to-capital ratio declining according to the filing.
- Operating cash flow as a percentage of revenue improved, and after deducting capital expenditure, free cash flow margin was higher than both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin improving. Versus the same quarter last year, all metrics were higher and the margin was significantly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$227.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$81.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$108.3M
Cash generated by operations before capital spending.
CapEx
$26.7M
Capital spending and related asset purchases.
FCF margin
15.0%
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 | $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% |
| 2024-09-30 | $543.9M | $108.3M | $26.7M | $81.6M | 15.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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 increased from the prior quarter and the year-ago quarter, outpacing revenue growth and leading to a higher free cash flow margin.
This improvement in cash generation supported a stronger free cash flow margin and enhanced liquidity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved, and after deducting capital expenditure, free cash flow margin was higher than both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin improving. Versus the same quarter last year, all metrics were higher and the margin was significantly higher.
Monitor the company's debt-to-capital ratio and cash position, as the filing noted an improvement in leverage and a higher cash balance.