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 margin weakened versus the year-ago quarter but strengthened sequentially.
- Operating cash flow converted fully into free cash flow as capital expenditure was zero, resulting in a free cash flow margin that moved in line with operating cash flow relative to revenue.
- Compared to the prior quarter, revenue and operating cash flow were higher, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$195.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$69.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$69.2M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
21.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $326.7M | $69.2M | $0 | $69.2M | 21.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 313.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $399.2M | 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 from the prior quarter and from the same quarter last year, driving a higher free cash flow despite a lower margin compared to a year ago.
The sequential rise in operating cash flow was the strongest observable driver of free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted fully into free cash flow as capital expenditure was zero, resulting in a free cash flow margin that moved in line with operating cash flow relative to revenue.
Compared to the prior quarter, revenue and operating cash flow were higher, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow margin was lower.
Monitor whether operating cash flow can sustain its sequential improvement given the absence of capital expenditure.