Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow improved compared to the previous quarter and the same quarter last year, leading to positive free cash flow with a margin higher than both prior periods. The company's filing notes that revenues depend on the value and composition of assets under management, which are subject to market fluctuations and client flows.
- Operating cash flow exceeded capital expenditure, resulting in a free cash flow margin that was higher than the same quarter last year and a significant improvement from the negative margin in the prior quarter.
- Compared to the previous quarter, all metrics improved: revenue was higher, operating cash flow turned from negative to positive, and free cash flow became positive. Versus the same quarter last year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the free cash flow margin was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$995.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$534.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$637.3M
Cash generated by operations before capital spending.
CapEx
$102.5M
Capital spending and related asset purchases.
FCF margin
30.6%
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 | $1.6B | $394.8M | $71.7M | $323.1M | 20.1% |
| 2023-09-30 | $1.7B | $470.0M | $93.6M | $376.4M | 22.5% |
| 2023-12-31 | $1.6B | -$157.4M | $81.9M | -$239.3M | -14.6% |
| 2024-03-31 | $1.8B | $637.3M | $102.5M | $534.8M | 30.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.2% | 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 Turnaround
Operating cash flow recovered from a negative position in the prior quarter to a positive level, and was also higher than the year-ago quarter, providing the primary uplift to free cash flow.
This drove the transition from negative to positive free cash flow and improved the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in a free cash flow margin that was higher than the same quarter last year and a significant improvement from the negative margin in the prior quarter.
Compared to the previous quarter, all metrics improved: revenue was higher, operating cash flow turned from negative to positive, and free cash flow became positive. Versus the same quarter last year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the free cash flow margin was slightly higher.
Capital expenditure increased relative to both prior periods; the company's filing indicates ongoing expenditures to develop new products and services.