Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher revenue and operating cash flow. The free cash flow margin remained strong, though slightly lower than the previous quarter.
- Revenue and operating cash flow both increased, while capital expenditure was modest relative to operating cash flow, resulting in a high free cash flow margin. The conversion from revenue to free cash flow remained efficient.
- Compared to the immediately preceding quarter, free cash flow and revenue were higher, but the free cash flow margin was slightly lower. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$900.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$262.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$271.5M
Cash generated by operations before capital spending.
CapEx
$8.7M
Capital spending and related asset purchases.
FCF margin
34.5%
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 | $645.3M | $164.4M | $4.4M | $160.0M | 24.8% |
| 2024-09-30 | $690.0M | $228.7M | $8.4M | $220.3M | 31.9% |
| 2024-12-31 | $737.7M | $265.2M | $7.8M | $257.5M | 34.9% |
| 2025-03-31 | $761.6M | $271.5M | $8.7M | $262.8M | 34.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1066.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the same quarter last year, driving operating cash flow and free cash flow higher.
The higher revenue provided a solid base for cash generation, enabling free cash flow to increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased, while capital expenditure was modest relative to operating cash flow, resulting in a high free cash flow margin. The conversion from revenue to free cash flow remained efficient.
Compared to the immediately preceding quarter, free cash flow and revenue were higher, but the free cash flow margin was slightly lower. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
Note the company's disclosure that macroeconomic conditions could slow information technology spending, and that the subscription model may delay the impact on results.