Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position a year ago but decreased from the prior quarter.
- Operating cash flow was positive and supported free cash flow after capital expenditure, yielding a positive free cash flow margin. The margin was lower than the prior quarter but significantly improved from the negative margin a year ago.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter last year, operating cash flow and free cash flow improved from negative to positive, and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$977.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$342.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$391.0M
Cash generated by operations before capital spending.
CapEx
$49.0M
Capital spending and related asset purchases.
FCF margin
9.4%
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 | $3.3B | -$188.0M | $53.0M | -$241.0M | -7.3% |
| 2023-09-30 | $3.5B | $434.0M | $51.0M | $383.0M | 10.9% |
| 2023-12-31 | $3.5B | $543.0M | $50.0M | $493.0M | 14.0% |
| 2024-03-31 | $3.6B | $391.0M | $49.0M | $342.0M | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 was higher than both the prior quarter and the same quarter last year, providing a larger base for cash generation. The filing notes increases in asset management fees and brokerage revenues.
Higher revenue supported the positive free cash flow, reversing the negative free cash flow from a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive and supported free cash flow after capital expenditure, yielding a positive free cash flow margin. The margin was lower than the prior quarter but significantly improved from the negative margin a year ago.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter last year, operating cash flow and free cash flow improved from negative to positive, and the margin strengthened.
Monitor the trend in operating cash flow, which decreased from the prior quarter despite higher revenue.