Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the year-ago quarter, driven by higher operating cash flow and slightly lower capital spending. Revenue was stable sequentially and grew year-over-year, resulting in an enhanced free cash flow margin.
- Operating cash flow strengthened substantially, while capital expenditure declined moderately, resulting in a higher free cash flow. The free cash flow margin rose compared with both the preceding quarter and the same quarter last year, reflecting improved conversion of revenue into cash.
- Compared with the prior quarter, revenue was stable, operating cash flow improved significantly, and free cash flow and its margin both increased. Versus the year-ago quarter, revenue was higher, operating cash flow strengthened, and free cash flow margin also improved.
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
$420.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$431.9M
Cash generated by operations before capital spending.
CapEx
$11.7M
Capital spending and related asset purchases.
FCF margin
28.4%
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 | $374.1M | $17.6M | $356.5M | 24.8% |
| 2024-09-30 | $1.5B | $340.6M | $29.3M | $311.3M | 21.4% |
| 2024-12-31 | $1.5B | $336.9M | $15.0M | $321.9M | 22.0% |
| 2025-03-31 | $1.5B | $431.9M | $11.7M | $420.1M | 28.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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.
Strong operating cash flow
Operating cash flow rose notably from both the preceding quarter and the year-ago quarter, providing the primary lift to free cash flow. Capital expenditure declined modestly versus the prior quarter, adding further support.
Higher operating cash flow combined with lower capital spending boosted free cash flow and widened the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow strengthened substantially, while capital expenditure declined moderately, resulting in a higher free cash flow. The free cash flow margin rose compared with both the preceding quarter and the same quarter last year, reflecting improved conversion of revenue into cash.
Compared with the prior quarter, revenue was stable, operating cash flow improved significantly, and free cash flow and its margin both increased. Versus the year-ago quarter, revenue was higher, operating cash flow strengthened, and free cash flow margin also improved.
Monitor the trend in capital expenditure, as this quarter's level was lower than both the prior and year-ago periods, and any increase could affect free cash flow.