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 improved compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position a year ago, though it decreased from the preceding quarter.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was positive, reflecting a conversion of revenue into cash after capital spending.
- Compared to the prior quarter, revenue was higher but free cash flow and free cash flow margin were lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$64.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$14.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$14.5M
Cash generated by operations before capital spending.
CapEx
$200000
Capital spending and related asset purchases.
FCF margin
5.6%
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 | $74.8M | -$10.6M | $200000 | -$10.8M | -14.4% |
| 2023-09-30 | $115.3M | $14.6M | $0 | $14.6M | 12.7% |
| 2023-12-31 | $194.8M | $46.1M | $0 | $46.1M | 23.7% |
| 2024-03-31 | $254.9M | $14.5M | $200000 | $14.3M | 5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -230.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $341.2M | 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 immediately preceding quarter and the same quarter one year earlier, providing a stronger base for cash generation.
Higher revenue supported positive operating cash flow and free 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 exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was positive, reflecting a conversion of revenue into cash after capital spending.
Compared to the prior quarter, revenue was higher but free cash flow and free cash flow margin were lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all improved significantly.
Monitor the trend in free cash flow margin, which weakened from the prior quarter despite higher revenue.