Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply this quarter, with free cash flow and free cash flow margin reaching their highest levels among the three quarters shown. Revenue rose modestly, while operating cash flow increased significantly, supported by lower capital expenditure.
- Revenue increased slightly, while operating cash flow advanced notably, leading to a higher free cash flow and a stronger free cash flow margin. Capital expenditure decreased, providing further support to free cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow both improved, with free cash flow margin rising. Versus the same quarter one year earlier, free cash flow and margin were higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$851.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$247.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$253.4M
Cash generated by operations before capital spending.
CapEx
$5.6M
Capital spending and related asset purchases.
FCF margin
63.4%
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 | $380.4M | $204.2M | $5.0M | $199.2M | 52.4% |
| 2024-03-31 | $384.3M | $257.3M | $3.8M | $253.5M | 66.0% |
| 2024-06-30 | $387.1M | $160.4M | $9.2M | $151.2M | 39.1% |
| 2024-09-30 | $390.6M | $253.4M | $5.6M | $247.8M | 63.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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.
Operating Cash Flow Strength
Operating cash flow increased substantially from both the prior quarter and the same quarter last year, driving the improvement in free cash flow and margin.
The higher operating cash flow was the strongest observable driver of free cash flow improvement this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased slightly, while operating cash flow advanced notably, leading to a higher free cash flow and a stronger free cash flow margin. Capital expenditure decreased, providing further support to free cash flow.
Compared to the prior quarter, operating cash flow and free cash flow both improved, with free cash flow margin rising. Versus the same quarter one year earlier, free cash flow and margin were higher, while capital expenditure was lower.
Monitor the trend in capital expenditure, as its lower level this quarter was a significant factor in free cash flow improvement.