Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the same quarter last year but weakened sharply from the prior quarter. The cash conversion rate was lower than the preceding quarter despite a slight revenue decline.
- Revenue was slightly lower than both the prior quarter and the year-ago quarter. Operating cash flow was higher than a year ago but significantly lower than the prior quarter, resulting in a free cash flow margin that improved year-over-year but weakened sequentially.
- Compared to the prior quarter, free cash flow and margin were substantially lower, driven by a much lower operating cash flow. Versus the same quarter last year, free cash flow and margin were higher, with operating cash flow more than offsetting a higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$630.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$27.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$52.7M
Cash generated by operations before capital spending.
CapEx
$25.3M
Capital spending and related asset purchases.
FCF margin
2.8%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $1.0B | $159.8M | $53.5M | $106.4M | 10.3% |
| 2024-09-30 | $977.9M | $263.7M | $29.8M | $233.9M | 23.9% |
| 2024-12-31 | $995.2M | $286.1M | $23.0M | $263.1M | 26.4% |
| 2025-03-31 | $979.3M | $52.7M | $25.3M | $27.4M | 2.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 29.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 Volatility
Operating cash flow was the strongest observable driver of free cash flow changes, being substantially lower than the prior quarter but higher than the year-ago quarter. This shift occurred even as revenue remained relatively stable.
The sharp sequential decline in operating cash flow compressed free cash flow and margin, reversing the improvement seen from the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than both the prior quarter and the year-ago quarter. Operating cash flow was higher than a year ago but significantly lower than the prior quarter, resulting in a free cash flow margin that improved year-over-year but weakened sequentially.
Compared to the prior quarter, free cash flow and margin were substantially lower, driven by a much lower operating cash flow. Versus the same quarter last year, free cash flow and margin were higher, with operating cash flow more than offsetting a higher capital expenditure.
Monitor the level of operating cash flow relative to revenue, as it declined sharply from the prior quarter despite stable revenue.