Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable year over year but declined sequentially. Free cash flow margin improved from the prior year quarter but weakened from the previous quarter.
- Operating cash flow was substantial relative to revenue, and capital expenditure was modest, resulting in strong conversion to free cash flow. Free cash flow margin was improved versus the prior year quarter.
- Compared to the prior quarter, revenue and cash flow metrics were lower. Compared to the same quarter last year, revenue was unchanged while free cash flow and free cash flow margin were higher.
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
$222.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$256.4M
Cash generated by operations before capital spending.
CapEx
$33.7M
Capital spending and related asset purchases.
FCF margin
13.0%
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 | $1.8B | $304.9M | $21.8M | $283.1M | 15.7% |
| 2024-09-30 | $1.9B | $404.0M | $29.7M | $374.3M | 20.1% |
| 2024-12-31 | $1.9B | $526.2M | $35.3M | $490.9M | 25.9% |
| 2025-03-31 | $1.7B | $256.4M | $33.7M | $222.7M | 13.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Improved Operating Cash Flow and Lower Capex
The year-over-year improvement in free cash flow was driven by higher operating cash flow and lower capital expenditure. Both factors contributed positively to the increase.
This combination led to a meaningful year-over-year increase in free cash flow margin despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantial relative to revenue, and capital expenditure was modest, resulting in strong conversion to free cash flow. Free cash flow margin was improved versus the prior year quarter.
Compared to the prior quarter, revenue and cash flow metrics were lower. Compared to the same quarter last year, revenue was unchanged while free cash flow and free cash flow margin were higher.
Monitor revenue trends given the sequential decline.