Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter, while free cash flow margin slightly weakened. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the same quarter last year, indicating a weaker cash conversion rate. Capital expenditure was higher than both comparison periods, which further reduced free cash flow relative to operating cash flow.
- Compared to the immediately preceding quarter, revenue and operating cash flow improved, but free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$518.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$136.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$145.1M
Cash generated by operations before capital spending.
CapEx
$8.7M
Capital spending and related asset purchases.
FCF margin
15.3%
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 | $840.4M | $127.4M | $6.9M | $120.5M | 14.3% |
| 2023-12-31 | $754.1M | $152.8M | $11.2M | $141.6M | 18.8% |
| 2024-03-31 | $748.3M | $127.4M | $7.2M | $120.3M | 16.1% |
| 2024-06-30 | $891.9M | $145.1M | $8.7M | $136.4M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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.
Weaker Cash Conversion
Operating cash flow grew less than revenue compared to both the prior quarter and the same quarter last year, and capital expenditure increased in absolute terms. This combination resulted in a lower free cash flow margin.
Free cash flow margin declined sequentially and year-over-year, indicating reduced cash generation efficiency per dollar of revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the prior quarter and the same quarter last year, indicating a weaker cash conversion rate. Capital expenditure was higher than both comparison periods, which further reduced free cash flow relative to operating cash flow.
Compared to the immediately preceding quarter, revenue and operating cash flow improved, but free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were all lower.
Monitor the trend in free cash flow margin, which declined sequentially and year-over-year despite higher revenue.