Understand cash generation quality and how management allocates capital.
Free cash flow was $179.40M in the latest quarter (17.0% decrease YoY). FCF margin is 6.1%. Shares outstanding increased by 2.6% year-over-year, indicating dilution (potentially from stock compensation or capital raises). Free cash flow is the lifeblood of a business — it funds dividends, buybacks, debt reduction, and reinvestment without relying on external capital.
Free cash flow, earnings quality, and capital allocation