Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter and the same quarter last year, driven by stronger operating cash conversion despite lower revenue sequentially. The free cash flow margin widened versus both comparison periods, reflecting improved cash generation efficiency.
- Revenue declined from the prior quarter but rose compared to a year ago. Operating cash flow increased notably from both periods, enabling free cash flow to grow substantially. Capital expenditure remained stable and minimal relative to operating cash flow, allowing most of the operating cash to convert to free cash flow.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin all improved. Against the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$834.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$246.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$256.6M
Cash generated by operations before capital spending.
CapEx
$10.5M
Capital spending and related asset purchases.
FCF margin
33.7%
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 | $695.5M | $159.0M | $5.8M | $153.1M | 22.0% |
| 2024-09-30 | $746.7M | $246.5M | $6.1M | $240.4M | 32.2% |
| 2024-12-31 | $766.5M | $202.8M | $8.1M | $194.7M | 25.4% |
| 2025-03-31 | $731.1M | $256.6M | $10.5M | $246.1M | 33.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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.
Stronger operating cash flow
Operating cash flow was the strongest observable driver, rising from both the prior quarter and the year-ago quarter, even as revenue declined sequentially. Filing context indicates the improvement was supported by higher cash receipts from customers.
Higher operating cash flow directly boosted free cash flow and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter but rose compared to a year ago. Operating cash flow increased notably from both periods, enabling free cash flow to grow substantially. Capital expenditure remained stable and minimal relative to operating cash flow, allowing most of the operating cash to convert to free cash flow.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin all improved. Against the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor whether the sequentially lower revenue trend persists, as it could affect the sustainability of operating cash flow growth.