Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a significant improvement in operating cash flow. Revenue remained stable compared to the prior quarter while slightly higher year over year.
- Operating cash flow recovered strongly from negative levels in both the preceding quarter and the same quarter last year, leading to a positive free cash flow. Capital expenditure was slightly higher than the prior quarter but lower than a year ago.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow improved markedly from negative to positive, while free cash flow margin turned positive. Versus the same quarter one year earlier, both operating cash flow and free cash flow also shifted from negative to positive, with a higher margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$633.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$224.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$280.4M
Cash generated by operations before capital spending.
CapEx
$56.0M
Capital spending and related asset purchases.
FCF margin
15.9%
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 | $1.4B | $371.5M | $85.4M | $286.1M | 20.9% |
| 2024-09-30 | $1.4B | $351.8M | $51.9M | $299.9M | 22.1% |
| 2024-12-31 | $1.4B | -$127.5M | $49.8M | -$177.3M | -12.8% |
| 2025-03-31 | $1.4B | $280.4M | $56.0M | $224.4M | 15.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 62.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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.
Operating Cash Flow Recovery
The strongest observable driver was the swing in operating cash flow from negative to positive, which directly enabled free cash flow to turn positive. This improvement occurred even as revenue was relatively stable.
Free cash flow margin shifted from negative to positive as a result.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow recovered strongly from negative levels in both the preceding quarter and the same quarter last year, leading to a positive free cash flow. Capital expenditure was slightly higher than the prior quarter but lower than a year ago.
Compared to the immediately preceding quarter, operating cash flow and free cash flow improved markedly from negative to positive, while free cash flow margin turned positive. Versus the same quarter one year earlier, both operating cash flow and free cash flow also shifted from negative to positive, with a higher margin.
Monitor whether operating cash flow can sustain its positive trajectory in coming quarters.