Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose sequentially and year-over-year, but operating cash flow declined from the prior quarter, causing free cash flow to fall. The free cash flow margin weakened sequentially but improved compared to the same quarter last year.
- Revenue increased, but operating cash flow did not keep pace, resulting in a lower free cash flow margin. Capital expenditure was reduced from the prior quarter, partially offsetting the cash flow decline.
- Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened cash conversion margin. Versus the same quarter last year, all metrics improved, with revenue, operating cash flow, and free cash flow all higher, resulting in an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$510.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$88.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$118.1M
Cash generated by operations before capital spending.
CapEx
$29.7M
Capital spending and related asset purchases.
FCF margin
8.9%
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 | $990.4M | $131.4M | $28.0M | $103.4M | 10.4% |
| 2024-09-30 | $999.9M | $199.2M | $27.7M | $171.5M | 17.1% |
| 2024-12-31 | $924.1M | $193.5M | $46.6M | $146.8M | 15.9% |
| 2025-03-31 | $989.4M | $118.1M | $29.7M | $88.4M | 8.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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.
Cash Conversion Rate
Operating cash flow declined from the prior quarter even as revenue grew, causing the free cash flow margin to narrow.
Continued monitoring of operating cash flow generation is warranted given the sequential decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow did not keep pace, resulting in a lower free cash flow margin. Capital expenditure was reduced from the prior quarter, partially offsetting the cash flow decline.
Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened cash conversion margin. Versus the same quarter last year, all metrics improved, with revenue, operating cash flow, and free cash flow all higher, resulting in an improved margin.
Monitor the trend in operating cash flow relative to revenue, as the sequential decline may indicate changing cash conversion dynamics.