Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved notably in the quarter, with free cash flow and margin rising compared to both the prior quarter and the same period last year. The improvement was driven by a higher operating cash flow relative to a stable revenue base.
- Revenue was slightly lower than the previous quarter but higher than a year ago. Operating cash flow increased substantially compared to both periods, while capital expenditure was lower, leading to a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were higher, supported by stronger operating cash flow and slightly lower capital expenditure. Versus the same quarter last year, all metrics improved, with revenue up and operating cash flow more than offsetting capex.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$155.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$47.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$54.2M
Cash generated by operations before capital spending.
CapEx
$7.2M
Capital spending and related asset purchases.
FCF margin
24.7%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $161.7M | $42.6M | $6.7M | $35.9M | 22.2% |
| 2025-03-31 | $183.1M | $50.7M | $9.4M | $41.3M | 22.6% |
| 2025-06-30 | $192.5M | $39.1M | $7.5M | $31.6M | 16.4% |
| 2025-09-30 | $190.2M | $54.2M | $7.2M | $47.0M | 24.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1042.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 Improvement
Operating cash flow was higher than both the prior quarter and the same quarter last year, while revenue remained relatively stable compared to the prior quarter and increased year over year. This was the primary factor behind the improvement in free cash flow and margin.
The higher operating cash flow directly boosted free cash flow and raised the free cash flow margin, even as capital expenditure was slightly lower.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the previous quarter but higher than a year ago. Operating cash flow increased substantially compared to both periods, while capital expenditure was lower, leading to a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow and margin were higher, supported by stronger operating cash flow and slightly lower capital expenditure. Versus the same quarter last year, all metrics improved, with revenue up and operating cash flow more than offsetting capex.
Monitor whether revenue can maintain its year-over-year growth, as the recent quarter showed a slight decline from the prior period despite strong cash flow.