Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter one year earlier. Free cash flow turned positive versus the year-ago period but declined sharply from the prior quarter due to a lower operating cash flow margin.
- Operating cash flow as a percentage of revenue weakened significantly from the prior quarter, while capital expenditure remained stable in dollar terms. The resulting free cash flow margin dropped to a low single-digit percentage, reflecting a much lower conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were substantially lower, despite higher revenue. Relative to the same quarter one year earlier, free cash flow improved from a negative position to a positive one, and revenue grew.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$362.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$932000
Free cash flow in the selected fiscal quarter.
Operating cash flow
$25.8M
Cash generated by operations before capital spending.
CapEx
$24.9M
Capital spending and related asset purchases.
FCF margin
0.2%
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 | $503.2M | $82.8M | $11.3M | $71.4M | 14.2% |
| 2024-09-30 | $544.3M | $91.3M | $26.5M | $64.8M | 11.9% |
| 2024-12-31 | $575.1M | $250.2M | $24.8M | $225.4M | 39.2% |
| 2025-03-31 | $603.6M | $25.8M | $24.9M | $932000 | 0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$913.8M | 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 Margin Weakening
Revenue increased from the prior quarter, yet operating cash flow fell sharply, causing the operating cash flow margin to contract. The filing indicates that the company's primary liquidity source remains operating activities and available cash, with a notable increase in cash and equivalents following a debt issuance.
The lower operating cash flow margin is the strongest observable driver of the current quarter's free cash flow decline versus the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue weakened significantly from the prior quarter, while capital expenditure remained stable in dollar terms. The resulting free cash flow margin dropped to a low single-digit percentage, reflecting a much lower conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were substantially lower, despite higher revenue. Relative to the same quarter one year earlier, free cash flow improved from a negative position to a positive one, and revenue grew.
Monitor whether the operating cash flow margin can recover toward prior quarter levels in subsequent periods.