Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow declined from the prior quarter but remained higher than the same quarter last year, driving a free cash flow margin that improved year-over-year despite the sequential dip. Capital expenditure was minimal in both comparisons, supporting robust cash conversion.
- Revenue was nearly stable sequentially while operating cash flow decreased, resulting in a lower free cash flow margin compared to the prior quarter. Versus the same quarter last year, revenue grew and operating cash flow increased more than proportionally, lifting the free cash flow margin higher.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Relative to the same quarter one year earlier, all metrics were higher and the free cash flow margin improved notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$604.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$221.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$224.8M
Cash generated by operations before capital spending.
CapEx
$3.8M
Capital spending and related asset purchases.
FCF margin
40.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-30 | $543.3M | $263.7M | $2.9M | $260.8M | 48.0% |
| 2024-12-31 | $541.1M | $224.8M | $3.8M | $221.0M | 40.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 338.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $146.8M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Free Cash Flow Growth
Operating cash flow increased substantially compared to the same quarter last year, while capital expenditure was lower, resulting in a higher free cash flow margin. This improvement is the strongest observable driver in the quarter.
The year-over-year gain in free cash flow margin indicates a more efficient conversion of revenue into cash relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was nearly stable sequentially while operating cash flow decreased, resulting in a lower free cash flow margin compared to the prior quarter. Versus the same quarter last year, revenue grew and operating cash flow increased more than proportionally, lifting the free cash flow margin higher.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Relative to the same quarter one year earlier, all metrics were higher and the free cash flow margin improved notably.
The sequential decline in operating cash flow relative to stable revenue is a concrete item to monitor in coming quarters.