Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin was stable versus the prior quarter and higher than a year ago.
- Operating cash flow as a proportion of revenue was higher than a year earlier and similar to the prior quarter, while capital expenditure remained modest relative to operating cash flow. This supported a free cash flow margin that was stable sequentially and improved year over year.
- Compared to the prior quarter, revenue and free cash flow were higher, while the free cash flow margin was essentially stable. Versus the same quarter last year, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$537.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$139.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$146.9M
Cash generated by operations before capital spending.
CapEx
$7.5M
Capital spending and related asset purchases.
FCF margin
15.2%
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 | $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% |
| 2024-09-30 | $916.3M | $146.9M | $7.5M | $139.4M | 15.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 both sequentially and year over year, providing the primary support for the rise in free cash flow. The improvement was accompanied by higher revenue, while capital expenditure remained relatively contained.
The stronger operating cash flow directly lifted free cash flow and contributed to the year-over-year margin improvement.
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 higher than a year earlier and similar to the prior quarter, while capital expenditure remained modest relative to operating cash flow. This supported a free cash flow margin that was stable sequentially and improved year over year.
Compared to the prior quarter, revenue and free cash flow were higher, while the free cash flow margin was essentially stable. Versus the same quarter last year, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
Monitor the trend in free cash flow margin, which held steady sequentially but could shift with changes in operating cash flow conversion.