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 improved compared to the prior quarter and the same quarter last year. Free cash flow margin strengthened sequentially but was slightly lower than the year-ago period.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year. Capital expenditure increased from both comparison periods, resulting in free cash flow margin that improved sequentially but weakened year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow margin was lower due to higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$527.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$224.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$273.3M
Cash generated by operations before capital spending.
CapEx
$48.7M
Capital spending and related asset purchases.
FCF margin
35.8%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $605.8M | $91.1M | $25.2M | $65.9M | 10.9% |
| 2024-03-31 | $491.3M | $185.5M | $7.2M | $178.2M | 36.3% |
| 2024-06-30 | $584.5M | $81.3M | $22.1M | $59.1M | 10.1% |
| 2024-09-30 | $628.0M | $273.3M | $48.7M | $224.6M | 35.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 238.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | 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.
Revenue Growth Driving Cash Generation
Revenue was higher than both the prior quarter and the same quarter last year, and operating cash flow increased substantially from the prior quarter. This supported a higher free cash flow compared to both periods.
The increase in revenue was the strongest observable driver of the improved cash conversion in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year. Capital expenditure increased from both comparison periods, resulting in free cash flow margin that improved sequentially but weakened year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow margin was lower due to higher capital expenditure.
Monitor the trend in capital expenditure, which was higher in both comparisons and reduced free cash flow margin relative to the year-ago quarter.