Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter and also lower than the same quarter last year, driven by reduced operating cash flow. The cash conversion rate weakened significantly as revenue was mostly stable but operating cash flow fell.
- Revenue was relatively stable compared to both the prior quarter and the year-ago quarter, yet operating cash flow dropped substantially, resulting in a much lower free cash flow margin. Capital expenditure was reduced versus the prior quarter but still exceeded free cash flow, limiting cash conversion.
- Relative to the prior quarter, revenue was slightly higher but operating cash flow and free cash flow were markedly lower, weakening the margin. Compared to the same quarter last year, revenue was similar while operating cash flow and free cash flow were down, also leading to a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$770.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$11.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$37.4M
Cash generated by operations before capital spending.
CapEx
$26.0M
Capital spending and related asset purchases.
FCF margin
0.8%
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 | $1.5B | $239.6M | $33.9M | $205.7M | 14.2% |
| 2024-09-30 | $1.4B | $227.0M | $38.2M | $188.8M | 13.1% |
| 2024-12-31 | $1.3B | $432.4M | $68.0M | $364.4M | 27.3% |
| 2025-03-31 | $1.4B | $37.4M | $26.0M | $11.4M | 0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 7.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.1B | 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
Operating cash flow fell sharply from both the prior quarter and the year-ago quarter, while revenue remained stable. The decrease was the primary driver of the lower free cash flow and margin.
The weakened operating cash flow constrained free cash flow generation despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was relatively stable compared to both the prior quarter and the year-ago quarter, yet operating cash flow dropped substantially, resulting in a much lower free cash flow margin. Capital expenditure was reduced versus the prior quarter but still exceeded free cash flow, limiting cash conversion.
Relative to the prior quarter, revenue was slightly higher but operating cash flow and free cash flow were markedly lower, weakening the margin. Compared to the same quarter last year, revenue was similar while operating cash flow and free cash flow were down, also leading to a weakened margin.
Monitor the trend in operating cash flow given its significant decline from both the prior quarter and the year-ago period.