Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened in the current quarter compared to both the prior quarter and the same quarter last year. The decline was driven by lower operating cash flow despite higher revenue.
- Revenue was higher, but operating cash flow was lower, leading to a lower free cash flow and margin. Capital expenditure was slightly lower than the previous quarter but higher than a year ago.
- Compared to the immediately preceding quarter, free cash flow and margin both decreased as operating cash flow declined despite revenue growth. Year-over-year, the decline was more pronounced as operating cash flow was substantially lower on higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$868.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$206.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$262.2M
Cash generated by operations before capital spending.
CapEx
$55.7M
Capital spending and related asset purchases.
FCF margin
10.5%
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 | $1.9B | $258.0M | $56.1M | $201.9M | 10.5% |
| 2024-09-30 | $1.9B | $296.9M | $59.4M | $237.5M | 12.4% |
| 2024-12-31 | $1.8B | $282.8M | $60.2M | $222.6M | 12.2% |
| 2025-03-31 | $2.0B | $262.2M | $55.7M | $206.5M | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $31.8M | 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 was lower than both prior periods, due to a more significant use of cash from operating assets and liabilities according to the filing.
This was the primary factor reducing free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow was lower, leading to a lower free cash flow and margin. Capital expenditure was slightly lower than the previous quarter but higher than a year ago.
Compared to the immediately preceding quarter, free cash flow and margin both decreased as operating cash flow declined despite revenue growth. Year-over-year, the decline was more pronounced as operating cash flow was substantially lower on higher revenue.
Monitor changes in trade working capital, as it consumed more cash this quarter.