Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially and year-over-year, but operating cash flow and free cash flow decreased from the previous quarter. Free cash flow margin weakened compared to the prior quarter while improving versus the same quarter last year.
- Operating cash flow as a percentage of revenue decreased sharply from the prior quarter to the current quarter, while capital expenditure remained low. This resulted in a free cash flow margin that was lower than the previous quarter but higher than the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower and the margin weakened. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$735.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$93.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$98.1M
Cash generated by operations before capital spending.
CapEx
$4.5M
Capital spending and related asset purchases.
FCF margin
14.9%
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 | $550.2M | $187.3M | $4.6M | $182.8M | 33.2% |
| 2024-03-31 | $603.1M | $250.7M | $3.6M | $247.1M | 41.0% |
| 2024-06-30 | $518.6M | $213.8M | $1.6M | $212.2M | 40.9% |
| 2024-09-30 | $626.5M | $98.1M | $4.5M | $93.6M | 14.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$961.3M | 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 was higher than both the prior quarter and the year-ago quarter, indicating a positive top-line trend.
The revenue increase did not translate into higher operating cash flow in the current quarter.
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 decreased sharply from the prior quarter to the current quarter, while capital expenditure remained low. This resulted in a free cash flow margin that was lower than the previous quarter but higher than the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower and the margin weakened. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher and the margin improved.
Monitor the volatility in operating cash flow as it declined significantly from the prior quarter despite higher revenue.