Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened significantly this quarter as operating cash flow declined more sharply than revenue. Compared to both the prior quarter and the same quarter last year, cash generation was lower.
- Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow fell well below both periods. Capital expenditure was slightly lower than the prior quarter and notably lower than a year ago, yet free cash flow declined sharply, resulting in a materially lower free cash flow margin.
- Compared to the prior quarter, free cash flow was substantially lower, and the margin weakened from the prior period's level. Versus the same quarter one year ago, free cash flow was also lower, and the margin declined from the prior year's level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$557.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$91.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$105.7M
Cash generated by operations before capital spending.
CapEx
$14.3M
Capital spending and related asset purchases.
FCF margin
11.2%
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 | $807.2M | $133.6M | $15.9M | $117.7M | 14.6% |
| 2024-09-30 | $798.2M | $205.3M | $13.7M | $191.6M | 24.0% |
| 2024-12-31 | $862.9M | $172.6M | $15.5M | $157.1M | 18.2% |
| 2025-03-31 | $814.3M | $105.7M | $14.3M | $91.4M | 11.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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 compared to both the prior quarter and the same quarter last year. This decline was the primary factor behind the lower free cash flow and margin, despite a small reduction in capital expenditure.
The weaker operating cash flow reduced free cash flow despite a lower capital expenditure outlay.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow fell well below both periods. Capital expenditure was slightly lower than the prior quarter and notably lower than a year ago, yet free cash flow declined sharply, resulting in a materially lower free cash flow margin.
Compared to the prior quarter, free cash flow was substantially lower, and the margin weakened from the prior period's level. Versus the same quarter one year ago, free cash flow was also lower, and the margin declined from the prior year's level.
Monitor the trajectory of operating cash flow relative to revenue, as the conversion rate weakened markedly this quarter.