Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow turned positive in the current quarter versus a negative year-ago quarter, though both metrics decreased from the prior quarter. The free cash flow margin improved markedly compared to the same quarter last year, but weakened sequentially.
- Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow and free cash flow were positive in the current quarter compared to negative values a year earlier. However, operating cash flow and free cash flow decreased relative to the immediately preceding quarter, resulting in a lower free cash flow margin sequentially.
- Compared to the prior quarter, free cash flow weakened as operating cash flow fell and capital expenditure was slightly lower. Versus the same quarter a year ago, free cash flow improved substantially from a negative position to a positive figure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$433.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$57.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$64.3M
Cash generated by operations before capital spending.
CapEx
$6.6M
Capital spending and related asset purchases.
FCF margin
10.7%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $541.0M | $64.3M | $6.6M | $57.7M | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$346.3M | 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 shifted from negative in the year-ago quarter to positive in the current quarter, enabling a comparable shift in free cash flow. This improvement occurred even as revenue grew year over year.
The positive operating cash flow this quarter eliminated the negative free cash flow seen a year earlier, strengthening cash generation capability.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow and free cash flow were positive in the current quarter compared to negative values a year earlier. However, operating cash flow and free cash flow decreased relative to the immediately preceding quarter, resulting in a lower free cash flow margin sequentially.
Compared to the prior quarter, free cash flow weakened as operating cash flow fell and capital expenditure was slightly lower. Versus the same quarter a year ago, free cash flow improved substantially from a negative position to a positive figure.
Monitor the trend in operating cash flow given its sequential decline despite higher revenue, as this directly affects free cash flow generation.