Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin improved from the year-ago quarter but weakened from the preceding quarter.
- Operating cash flow was lower than the prior quarter but slightly below the year-ago level, while capital expenditure was higher than a year ago but similar to the prior quarter. Free cash flow margin improved year over year but declined sequentially, reflecting a mixed cash conversion pattern.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$351.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$64.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$71.8M
Cash generated by operations before capital spending.
CapEx
$7.3M
Capital spending and related asset purchases.
FCF margin
12.6%
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 | $504.3M | -$19.2M | $4.3M | -$23.5M | -4.7% |
| 2023-09-30 | $494.7M | $177.5M | $6.1M | $171.4M | 34.6% |
| 2023-12-31 | $480.9M | $147.4M | $8.0M | $139.4M | 29.0% |
| 2024-03-31 | $512.4M | $71.8M | $7.3M | $64.6M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$408.4M | 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 Supporting Cash Generation
Revenue increased from both the prior quarter and the year-ago quarter, providing a larger base for cash generation. Operating cash flow and free cash flow improved year over year, indicating stronger cash conversion relative to the same period last year.
Higher revenue contributed to a year-over-year improvement in free cash flow margin despite a sequential decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but slightly below the year-ago level, while capital expenditure was higher than a year ago but similar to the prior quarter. Free cash flow margin improved year over year but declined sequentially, reflecting a mixed cash conversion pattern.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved margin.
Monitor the relationship between revenue growth and operating cash flow, as the sequential decline in cash conversion efficiency may warrant attention.