Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by operating cash inflow that more than covered capital spending. Revenue was lower than the prior quarter but higher than the same quarter last year.
- Operating cash flow was positive and significantly exceeded capital expenditure, resulting in a healthy free cash flow margin. This marks a sharp improvement from the prior quarter's negative cash conversion.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow and free cash flow both improved from negative to positive. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$98.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$49.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$52.6M
Cash generated by operations before capital spending.
CapEx
$3.1M
Capital spending and related asset purchases.
FCF margin
17.6%
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 |
|---|---|---|---|---|---|
| 2024-07-27 | $250.9M | -$143.5M | $4.0M | -$147.5M | -58.8% |
| 2024-10-26 | $559.7M | $47.4M | $3.1M | $44.4M | 7.9% |
| 2025-01-25 | $419.7M | -$41.9M | $2.8M | -$44.7M | -10.7% |
| 2025-05-03 | $281.8M | $52.6M | $3.1M | $49.5M | 17.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -215.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$94.0M | 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 turnaround
Operating cash flow shifted from a significant outflow in the prior quarter to a sizable inflow this quarter, which was the primary factor behind the positive free cash flow. This change occurred despite lower revenue.
The improvement in operating cash flow was the strongest observable driver of free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive and significantly exceeded capital expenditure, resulting in a healthy free cash flow margin. This marks a sharp improvement from the prior quarter's negative cash conversion.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow and free cash flow both improved from negative to positive. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower.
Monitor whether operating cash flow can sustain its positive level in the next quarter given the seasonal revenue decline.