Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than a year earlier. Operating cash flow and free cash flow improved, leading to a stronger free cash flow margin.
- Cash conversion strengthened as operating cash flow increased relative to revenue, while capital expenditure declined from the prior quarter and was similar to the year-ago level. The resulting free cash flow margin was higher, supported by the company's reliance on operating cash flow as a primary liquidity source and its historical benefit from deferred tax assets.
- Compared to the prior quarter, free cash flow and margin improved as operating cash flow rose and capital spending fell. Versus the same quarter one year earlier, revenue was higher, and both free cash flow and margin increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$401.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$404.7M
Cash generated by operations before capital spending.
CapEx
$3.6M
Capital spending and related asset purchases.
FCF margin
33.6%
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 | $1.1B | $294.8M | $2.8M | $292.0M | 26.0% |
| 2024-09-30 | $1.1B | $355.2M | $5.0M | $350.2M | 30.5% |
| 2024-12-31 | $1.2B | $340.5M | $14.4M | $326.1M | 27.3% |
| 2025-03-31 | $1.2B | $404.7M | $3.6M | $401.1M | 33.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 182.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 Growth
Operating cash flow increased both sequentially and year-over-year, while capital expenditure remained subdued. This combination directly boosted free cash flow and the associated margin.
The higher operating cash flow and lower capex resulted in a stronger free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as operating cash flow increased relative to revenue, while capital expenditure declined from the prior quarter and was similar to the year-ago level. The resulting free cash flow margin was higher, supported by the company's reliance on operating cash flow as a primary liquidity source and its historical benefit from deferred tax assets.
Compared to the prior quarter, free cash flow and margin improved as operating cash flow rose and capital spending fell. Versus the same quarter one year earlier, revenue was higher, and both free cash flow and margin increased.
Monitor the sustainability of the lower capital expenditure level and its impact on future free cash flow generation.