Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and margin were lower compared to both the immediately preceding quarter and the same quarter one year earlier. Revenue and operating cash flow also declined, while capital expenditure decreased year over year but increased sequentially.
- The company converted a lower portion of revenue into operating cash flow, resulting in a free cash flow margin that weakened relative to both comparison periods. Capital expenditure absorbed a smaller share of operating cash flow than a year ago but a larger share than the prior quarter.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter last year, all metrics were lower except capital expenditure, which was lower year over year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$251.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$396.7M
Cash generated by operations before capital spending.
CapEx
$145.5M
Capital spending and related asset purchases.
FCF margin
9.0%
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 | $2.1B | $325.6M | $130.2M | $195.5M | 9.4% |
| 2024-09-29 | $3.0B | $695.3M | $128.0M | $567.3M | 19.0% |
| 2024-12-31 | $2.9B | $941.6M | $134.5M | $807.1M | 28.0% |
| 2025-03-30 | $2.8B | $396.7M | $145.5M | $251.2M | 9.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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 contraction
Operating cash flow was lower than both the prior quarter and the year-ago quarter, as revenue decreased and cost of sales increased compared to the same period last year.
The lower operating cash flow directly reduced free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a lower portion of revenue into operating cash flow, resulting in a free cash flow margin that weakened relative to both comparison periods. Capital expenditure absorbed a smaller share of operating cash flow than a year ago but a larger share than the prior quarter.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter last year, all metrics were lower except capital expenditure, which was lower year over year.
The pending acquisition of LesserEvil, LLC, announced on the last day of the quarter, is a concrete item to monitor for its impact on future capital allocation and cash flows.