Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2025, free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, driven by a larger decline in operating cash flow relative to revenue. Capital expenditure also decreased, but not enough to offset the drop in cash generation.
- Revenue was lower than the previous quarter but higher than a year ago. Operating cash flow fell from the prior quarter and the year-ago period, while capital expenditure decreased from the prior quarter but increased from a year ago. The resulting free cash flow margin contracted from both comparison periods.
- Compared to the immediately preceding quarter, free cash flow declined and the margin weakened. Relative to the same quarter one year earlier, free cash flow also decreased and the margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$575.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$96.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$183.8M
Cash generated by operations before capital spending.
CapEx
$87.0M
Capital spending and related asset purchases.
FCF margin
9.3%
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 | $1.0B | $279.4M | $66.1M | $213.3M | 21.2% |
| 2024-09-30 | $994.2M | $199.5M | $111.2M | $88.3M | 8.9% |
| 2024-12-31 | $1.1B | $301.4M | $124.6M | $176.8M | 15.9% |
| 2025-03-31 | $1.0B | $183.8M | $87.0M | $96.8M | 9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.4% | 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.
Operating Cash Flow Decline
Operating cash flow decreased more sharply than revenue, compressing the free cash flow margin. Capital expenditure was reduced but the decline in cash generation outpaced the spending reduction.
If operating cash flow continues to weaken relative to revenue, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter but higher than a year ago. Operating cash flow fell from the prior quarter and the year-ago period, while capital expenditure decreased from the prior quarter but increased from a year ago. The resulting free cash flow margin contracted from both comparison periods.
Compared to the immediately preceding quarter, free cash flow declined and the margin weakened. Relative to the same quarter one year earlier, free cash flow also decreased and the margin was lower.
Monitor the company's ability to sustain operating cash flow levels, as the filing context notes that cash from operations may fluctuate due to working capital requirements and capital deployment decisions.