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 decreased from the prior quarter, but free cash flow margin held nearly stable. Compared to the same quarter last year, all cash flow metrics improved, with free cash flow margin rising.
- Operating cash flow as a share of revenue was lower than the prior quarter but higher than a year ago. Capital expenditure declined from both comparison periods, supporting free cash flow relative to operating cash flow.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while free cash flow was slightly lower and free cash flow margin was essentially stable. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$245.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$54.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$63.9M
Cash generated by operations before capital spending.
CapEx
$9.2M
Capital spending and related asset purchases.
FCF margin
18.9%
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 | $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% |
| 2024-09-30 | $289.5M | $63.9M | $9.2M | $54.7M | 18.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Improved cash generation versus last year
Revenue and operating cash flow both increased from the same quarter last year, and free cash flow margin rose. The filing notes that cash and investments increased sequentially, and the company had substantial credit availability.
The stronger year-over-year cash conversion provides a more favorable liquidity position compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was lower than the prior quarter but higher than a year ago. Capital expenditure declined from both comparison periods, supporting free cash flow relative to operating cash flow.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while free cash flow was slightly lower and free cash flow margin was essentially stable. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
Monitor whether the lower capital expenditure level persists, as it directly supported free cash flow in the current quarter.