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, yet free cash flow margin narrowed. Versus the same quarter one year earlier, all cash flow metrics improved substantially.
- Operating cash flow exceeded capital expenditure, which was negligible, resulting in free cash flow equal to operating cash flow. The free cash flow margin was positive, indicating that a portion of revenue was converted into free cash flow.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Relative to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$172.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$49.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$49.4M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
16.2%
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 | $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% |
| 2024-09-30 | $305.7M | $49.4M | $0 | $49.4M | 16.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 216.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $373.9M | 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 Supporting Cash Generation
Revenue increased from both the prior quarter and the year-ago quarter, providing a larger base for cash generation. Operating cash flow improved significantly year over year, though it declined sequentially.
Higher revenue contributed to a stronger absolute free cash flow compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, which was negligible, resulting in free cash flow equal to operating cash flow. The free cash flow margin was positive, indicating that a portion of revenue was converted into free cash flow.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Relative to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor whether operating cash flow can sustain its recent level relative to revenue, given the sequential decline in cash conversion efficiency.