Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year and slightly higher than the prior quarter, but operating cash flow declined sharply, resulting in a much lower free cash flow and margin. The filing notes that the company completed its acquisition of AspenTech during the quarter, with the business now integrated into the Control Systems & Software segment.
- Revenue remained broadly stable, yet operating cash flow fell significantly, causing free cash flow and free cash flow margin to weaken. The gap between revenue and cash generation widened notably this quarter.
- Compared to the prior quarter, free cash flow was lower, and compared to the same quarter one year earlier, free cash flow was also lower. The decline in operating cash flow was the primary factor behind the weakened cash performance.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$154.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$241.0M
Cash generated by operations before capital spending.
CapEx
$87.0M
Capital spending and related asset purchases.
FCF margin
3.5%
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 | $4.4B | $1.1B | $92.0M | $998.0M | 22.8% |
| 2024-09-30 | $4.6B | $1.1B | $168.0M | $916.0M | 19.8% |
| 2024-12-31 | $4.2B | $777.0M | $83.0M | $694.0M | 16.6% |
| 2025-03-31 | $4.4B | $241.0M | $87.0M | $154.0M | 3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 31.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Sharp Decline in Operating Cash Flow
Operating cash flow was significantly lower than both the prior quarter and the same quarter last year, despite revenue being stable. This is the strongest observable factor behind the reduction in free cash flow.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained broadly stable, yet operating cash flow fell significantly, causing free cash flow and free cash flow margin to weaken. The gap between revenue and cash generation widened notably this quarter.
Compared to the prior quarter, free cash flow was lower, and compared to the same quarter one year earlier, free cash flow was also lower. The decline in operating cash flow was the primary factor behind the weakened cash performance.
Monitor the trajectory of operating cash flow, as it is the key driver of free cash flow and has declined sharply from both prior periods.