Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased sequentially despite higher revenue, as operating cash flow declined and capital expenditure increased. Compared to the same quarter last year, free cash flow and its margin improved meaningfully.
- Revenue increased relative to the prior quarter, yet operating cash flow was lower, yielding a weakened cash conversion. The free cash flow margin contracted, reflecting a higher proportion of capital expenditure relative to operating cash flow.
- Compared to the immediately preceding quarter, free cash flow and its margin were lower, while revenue was higher. Versus the same quarter one year earlier, all metrics — revenue, operating cash flow, capital expenditure, free cash flow, and margin — were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$256.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$51.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$163.0M
Cash generated by operations before capital spending.
CapEx
$111.8M
Capital spending and related asset purchases.
FCF margin
3.4%
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 | $1.3B | $162.3M | $99.9M | $62.4M | 4.7% |
| 2024-09-30 | $1.3B | $153.0M | $92.0M | $61.0M | 4.5% |
| 2024-12-31 | $1.4B | $187.4M | $105.7M | $81.7M | 5.7% |
| 2025-03-31 | $1.5B | $163.0M | $111.8M | $51.1M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 325.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakening cash conversion efficiency
Revenue increased from the prior quarter, but operating cash flow fell, pulling free cash flow lower. The free cash flow margin dropped markedly, indicating that a larger share of operating cash flow was absorbed by capital expenditure.
The decline in cash conversion efficiency constrained free cash flow generation despite a larger revenue base.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased relative to the prior quarter, yet operating cash flow was lower, yielding a weakened cash conversion. The free cash flow margin contracted, reflecting a higher proportion of capital expenditure relative to operating cash flow.
Compared to the immediately preceding quarter, free cash flow and its margin were lower, while revenue was higher. Versus the same quarter one year earlier, all metrics — revenue, operating cash flow, capital expenditure, free cash flow, and margin — were higher.
Monitor the trajectory of operating cash flow relative to revenue, as it declined sequentially despite revenue growth.