Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved sharply from the prior quarter but weakened compared to the year-ago quarter.
- Operating cash flow was higher than the prior quarter and similar to the year-ago quarter, while capital expenditure was lower than both comparison periods. This resulted in free cash flow that was higher than the prior quarter but slightly lower than the year-ago quarter, with the free cash flow margin reflecting a similar pattern.
- Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a much improved free cash flow margin. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly lower, and free cash flow was nearly stable, resulting in a lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$551.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$178.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$185.5M
Cash generated by operations before capital spending.
CapEx
$7.2M
Capital spending and related asset purchases.
FCF margin
36.3%
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 | $464.3M | $128.1M | $7.4M | $120.7M | 26.0% |
| 2023-09-30 | $493.3M | $191.5M | $5.0M | $186.5M | 37.8% |
| 2023-12-31 | $605.8M | $91.1M | $25.2M | $65.9M | 10.9% |
| 2024-03-31 | $491.3M | $185.5M | $7.2M | $178.2M | 36.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 563.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 relative to capital expenditure
Operating cash flow was substantially higher than the prior quarter and nearly matched the year-ago quarter, while capital expenditure was lower than both periods. This combination drove free cash flow well above the prior quarter and kept it close to the year-ago level.
The free cash flow margin improved sharply from the prior quarter, reflecting stronger cash generation relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter and similar to the year-ago quarter, while capital expenditure was lower than both comparison periods. This resulted in free cash flow that was higher than the prior quarter but slightly lower than the year-ago quarter, with the free cash flow margin reflecting a similar pattern.
Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a much improved free cash flow margin. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly lower, and free cash flow was nearly stable, resulting in a lower free cash flow margin.
Monitor the trend in free cash flow margin, which improved from the prior quarter but declined from the year-ago level.