Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter and the same quarter last year, but operating cash flow declined, resulting in lower free cash flow and a weakened free cash flow margin. Capital expenditure increased compared to both periods, further reducing free cash flow.
- Operating cash flow as a percentage of revenue decreased, as revenue growth was outpaced by a decline in cash generated from operations. Higher capital expenditure also contributed to a lower free cash flow conversion rate.
- Compared to the prior quarter, free cash flow margin weakened from a higher level to a lower level, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter last year, the margin declined more significantly as operating cash flow was lower and capital expenditure was substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$236.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$57.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$75.5M
Cash generated by operations before capital spending.
CapEx
$18.0M
Capital spending and related asset purchases.
FCF margin
18.8%
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 | $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% |
| 2024-06-30 | $306.1M | $75.5M | $18.0M | $57.5M | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 141.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | 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.
Operating Cash Flow Decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, while capital expenditure increased, leading to a lower free cash flow margin.
This trend is a key factor to monitor for future free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue decreased, as revenue growth was outpaced by a decline in cash generated from operations. Higher capital expenditure also contributed to a lower free cash flow conversion rate.
Compared to the prior quarter, free cash flow margin weakened from a higher level to a lower level, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter last year, the margin declined more significantly as operating cash flow was lower and capital expenditure was substantially higher.
Monitor the company's cash and borrowing position, as disclosed in the filing, given the decline in cash and investments and the use of the revolving credit facility.