Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the prior quarter and the year-ago quarter, resulting in improved free cash flow and margin. The quarter-end cash position strengthened and the debt-to-capital ratio decreased compared to the prior year-end.
- Revenue increased while operating cash flow expanded at a faster pace than capital expenditure, leading to free cash flow of a higher amount and margin compared with both the prior quarter and the year-ago quarter.
- Compared with the prior quarter, all metrics strengthened: revenue, operating cash flow, free cash flow, and margin were higher. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin also improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$305.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$93.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$147.5M
Cash generated by operations before capital spending.
CapEx
$53.6M
Capital spending and related asset purchases.
FCF margin
15.7%
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 | $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% |
| 2024-12-31 | $597.5M | $147.5M | $53.6M | $93.9M | 15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.0% | 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 expansion
Operating cash flow increased notably compared with both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow.
The stronger operating cash generation drove 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 while operating cash flow expanded at a faster pace than capital expenditure, leading to free cash flow of a higher amount and margin compared with both the prior quarter and the year-ago quarter.
Compared with the prior quarter, all metrics strengthened: revenue, operating cash flow, free cash flow, and margin were higher. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin also improved significantly.
Monitor the trend in capital expenditure, which was higher sequentially and could affect future cash conversion if it continues to outpace operating cash flow growth.