Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow and free cash flow were lower than the prior quarter, though slightly higher than a year earlier, resulting in a weakened cash conversion margin versus the previous period but stable relative to last year.
- The company converted a smaller portion of revenue into operating cash flow this quarter compared to the preceding quarter, as evidenced by the lower free cash flow margin. The conversion rate was similar to the same quarter last year.
- Compared to the previous quarter, revenue was higher but operating cash flow and free cash flow were substantially lower, leading to a weakened free cash flow margin. Compared to the same quarter last year, revenue and cash flows were slightly higher, with a roughly stable margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$702.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$72.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$74.9M
Cash generated by operations before capital spending.
CapEx
$2.1M
Capital spending and related asset purchases.
FCF margin
14.6%
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 | $447.8M | $213.3M | $1.7M | $211.6M | 47.2% |
| 2024-09-30 | $453.8M | $226.5M | $1.8M | $224.7M | 49.5% |
| 2024-12-31 | $440.0M | $194.0M | $841000 | $193.2M | 43.9% |
| 2025-03-31 | $498.7M | $74.9M | $2.1M | $72.8M | 14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 44.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | 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
Revenue increased but operating cash flow fell sharply from the prior quarter, which was the main factor behind the drop in free cash flow.
If operating cash flow does not improve, free cash flow may remain constrained relative to revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a smaller portion of revenue into operating cash flow this quarter compared to the preceding quarter, as evidenced by the lower free cash flow margin. The conversion rate was similar to the same quarter last year.
Compared to the previous quarter, revenue was higher but operating cash flow and free cash flow were substantially lower, leading to a weakened free cash flow margin. Compared to the same quarter last year, revenue and cash flows were slightly higher, with a roughly stable margin.
Monitor whether operating cash flow recovers toward the level seen in the prior quarter.