What does free cash flow margin mean?

Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.

PROG Holdings PRG Free cash flow margin

Discontinued — last reported Q3 '20

Free cash flow margin at other companies

PayPal Holdings, Inc.PYPL

16.3%-2.4pp

Affirm Holdings, Inc.AFRM

19.8%-0.4pp

FCF

FirstCash HoldingsFCFS

14.5%+0.6pp

Rush EnterprisesRUSHB

5.7%-0.3pp

SezzleSEZL

51%+0.3pp

Other financials

Income statement

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Revenue$742.7M+11.1%

Gross profit$680.2M+1.8%

Operating income$65.3M+15.9%

Net income$36.1M+3.8%

EPS (diluted)$0.89+7.2%

Balance sheet

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Cash & equivalents$79.5M-62.7%

Total debt$936.1M+55.0%

Total equity$774.4M+18.3%

Total assets$2.0B+39.0%

Cash flow

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Operating cash flow$171.7M-18.2%

CapEx$3.1M+60.5%

Free cash flow$168.6M-19.0%

Valuation

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Market cap$1.66B+6.4%

Profitability

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Operating margin8.7%0.0pp

Net margin6%-2.7pp

Returns & leverage

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Return on equity20.7%-13.1pp

Debt / equity1.2×+0.3×

Where this comes from

Calculated from PROG Holdings’s reported figures.

free cash flow/total revenue=22.8%

Based on trailing twelve months.

The official record: PROG Holdings’s 10-Q, filed November 3, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does free cash flow margin mean?: Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.