Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Generac's current quarter free cash flow weakened significantly from both the prior quarter and the year-ago quarter. Revenue improved versus the same quarter last year but declined sequentially.
- Operating cash flow decreased sharply from both comparison periods, driving a lower free cash flow margin despite a reduction in capital expenditure.
- Compared to the prior quarter, free cash flow and margin deteriorated substantially, while capital spending was lower. Versus the same quarter last year, free cash flow and margin also declined, though revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$546.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$27.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$58.2M
Cash generated by operations before capital spending.
CapEx
$30.9M
Capital spending and related asset purchases.
FCF margin
2.9%
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 | $998.2M | $77.7M | $28.0M | $49.7M | 5.0% |
| 2024-09-30 | $1.2B | $212.3M | $28.6M | $183.7M | 15.6% |
| 2024-12-31 | $1.2B | $339.5M | $53.3M | $286.1M | 23.2% |
| 2025-03-31 | $942.1M | $58.2M | $30.9M | $27.2M | 2.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 62.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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.
Free Cash Flow Drop
The sharp decline in free cash flow was primarily due to a lower operating cash flow, despite a reduction in capital expenditures. The free cash flow margin contracted meaningfully.
The weakened cash generation may pressure liquidity if the trend continues.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased sharply from both comparison periods, driving a lower free cash flow margin despite a reduction in capital expenditure.
Compared to the prior quarter, free cash flow and margin deteriorated substantially, while capital spending was lower. Versus the same quarter last year, free cash flow and margin also declined, though revenue was slightly higher.
Monitor whether operating cash flow recovers in upcoming quarters.