Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin weakened sequentially but strengthened year over year.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin, calculated as free cash flow divided by revenue, was lower than the prior quarter but higher than the same quarter last year.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$874.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$222.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$231.5M
Cash generated by operations before capital spending.
CapEx
$9.5M
Capital spending and related asset purchases.
FCF margin
56.1%
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 | $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% |
| 2024-12-31 | $395.4M | $231.5M | $9.5M | $222.0M | 56.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Revenue growth supporting free cash flow
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow followed a similar pattern, being higher year over year, though it was lower sequentially.
Higher revenue contributed to a year-over-year improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin, calculated as free cash flow divided by revenue, was lower than the prior quarter but higher than the same quarter last year.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined sequentially despite higher revenue.