Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially and versus the prior year, driven by higher operating cash flow. The free cash flow margin strengthened compared to the year-ago quarter but weakened versus the immediate preceding quarter.
- Revenue was stable compared to the year-ago quarter. Operating cash flow increased, capital expenditure decreased, resulting in higher free cash flow and an improved free cash flow margin relative to the same quarter last year. Relative to the preceding quarter, revenue and operating cash flow were lower, capital expenditure was also lower, leading to a lower free cash flow and a weaker margin.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Compared to the same quarter one year earlier, revenue was stable, while operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$394.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$417.5M
Cash generated by operations before capital spending.
CapEx
$23.1M
Capital spending and related asset purchases.
FCF margin
22.8%
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 | $1.7B | $381.4M | $21.4M | $360.0M | 20.8% |
| 2024-09-30 | $1.7B | $487.2M | $26.3M | $460.9M | 27.0% |
| 2024-12-31 | $1.8B | $550.0M | $51.7M | $498.3M | 28.3% |
| 2025-03-31 | $1.7B | $417.5M | $23.1M | $394.5M | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Operating Cash Flow
Compared to the same quarter last year, operating cash flow increased and capital expenditure decreased, lifting free cash flow and margin. The filing cites higher net income as a primary factor for the operating cash flow increase, partially offset by higher working capital investments.
This driver strengthened free cash flow generation relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the year-ago quarter. Operating cash flow increased, capital expenditure decreased, resulting in higher free cash flow and an improved free cash flow margin relative to the same quarter last year. Relative to the preceding quarter, revenue and operating cash flow were lower, capital expenditure was also lower, leading to a lower free cash flow and a weaker margin.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Compared to the same quarter one year earlier, revenue was stable, while operating cash flow, free cash flow, and margin were all higher.
Monitor the relationship between operating cash flow and net income, as the company attributed the increase in operating cash flow to higher net income partially offset by higher working capital investments.