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 turned positive and strengthened significantly.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that was positive and materially higher than the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher and the free cash flow margin turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$137.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$62.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$62.6M
Cash generated by operations before capital spending.
CapEx
$200000
Capital spending and related asset purchases.
FCF margin
21.6%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $289.2M | $62.6M | $200000 | $62.4M | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -800.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $367.1M | 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 Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, and was the primary factor behind the positive free cash flow and margin improvement.
The increase in operating cash flow drove free cash flow to a positive level and significantly strengthened the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that was positive and materially higher than the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher and the free cash flow margin turned from negative to positive.
Monitor whether operating cash flow can sustain its current level relative to revenue in future quarters.