Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by a substantial increase in operating cash flow. Revenue was stable compared to a year ago, while the free cash flow margin strengthened significantly.
- Operating cash flow of one hundred thirty-nine point six million dollars converted into free cash flow of one hundred twenty-two point five million dollars after capital expenditure of seventeen point one million dollars, yielding a free cash flow margin of twelve point one percent.
- Compared to the prior quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin improved from one point eight percent. Versus the same quarter last year, operating cash flow and free cash flow were also higher, while revenue was stable and the free cash flow margin rose from three point four percent.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$494.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$122.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$139.6M
Cash generated by operations before capital spending.
CapEx
$17.1M
Capital spending and related asset purchases.
FCF margin
12.1%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $902.6M | $195.9M | $32.5M | $163.4M | 18.1% |
| 2024-12-31 | $912.4M | $221.9M | $30.6M | $191.3M | 21.0% |
| 2025-03-31 | $963.9M | $38.7M | $21.3M | $17.4M | 1.8% |
| 2025-06-30 | $1.0B | $139.6M | $17.1M | $122.5M | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$125.5M | 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 Strength
Operating cash flow was the strongest observable driver, rising to one hundred thirty-nine point six million dollars from thirty-eight point seven million dollars in the prior quarter and from fifty-seven point four million dollars a year ago.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin to levels well above both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of one hundred thirty-nine point six million dollars converted into free cash flow of one hundred twenty-two point five million dollars after capital expenditure of seventeen point one million dollars, yielding a free cash flow margin of twelve point one percent.
Compared to the prior quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin improved from one point eight percent. Versus the same quarter last year, operating cash flow and free cash flow were also higher, while revenue was stable and the free cash flow margin rose from three point four percent.
Monitor the allowance for credit losses, which increased from twelve point nine million dollars at year-end to fourteen point nine million dollars at quarter end, as noted in the filing.