Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin improved from a year ago but weakened sequentially.
- Operating cash flow declined versus the prior quarter but rose sharply from a year earlier. Capital expenditure was higher in both comparisons, and free cash flow narrowed the sequential gap while widening significantly year over year. The free cash flow margin was clearly lower than the previous quarter but substantially higher than the same quarter one year ago.
- Compared with the immediately preceding quarter, revenue was higher yet free cash flow margin was lower, driven by a higher operating cash flow conversion rate relative to revenue. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics improved, with free cash flow margin strengthening materially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$251.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$64.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$81.0M
Cash generated by operations before capital spending.
CapEx
$16.4M
Capital spending and related asset purchases.
FCF margin
21.3%
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 | $301.3M | $83.4M | $10.8M | $72.6M | 24.1% |
| 2023-09-30 | $276.9M | $59.4M | $13.6M | $45.8M | 16.5% |
| 2023-12-31 | $272.6M | $83.1M | $14.9M | $68.3M | 25.0% |
| 2024-03-31 | $303.4M | $81.0M | $16.4M | $64.5M | 21.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 131.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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.
Strong operating cash flow growth from a year ago
Operating cash flow was substantially higher than the same quarter last year, outpacing the growth in revenue and capital expenditure. This drove free cash flow and its margin to significantly higher levels year over year.
The year-over-year cash conversion strengthened notably, providing a wider free cash flow buffer relative to the same period last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined versus the prior quarter but rose sharply from a year earlier. Capital expenditure was higher in both comparisons, and free cash flow narrowed the sequential gap while widening significantly year over year. The free cash flow margin was clearly lower than the previous quarter but substantially higher than the same quarter one year ago.
Compared with the immediately preceding quarter, revenue was higher yet free cash flow margin was lower, driven by a higher operating cash flow conversion rate relative to revenue. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics improved, with free cash flow margin strengthening materially.
Monitor whether the operating cash flow can sustain its year-over-year improvement or revert toward the prior quarter level.