Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year. Free cash flow improved sequentially but was slightly lower than the year-ago level, with free cash flow margin strengthening from the prior quarter yet weakening from the prior year.
- Operating cash flow increased from the previous quarter, driving a higher free cash flow, while capital expenditure remained relatively stable. The company noted that its cash and cash equivalents decreased during the quarter, attributing the change to financing activities including share repurchases and acquisition-related payments, partially offset by operating cash flows.
- Sequentially, revenue, operating cash flow, and free cash flow all improved, and the free cash flow margin strengthened. Year over year, revenue was higher but operating cash flow was lower, and free cash flow was slightly lower with a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$147.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$41.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$47.3M
Cash generated by operations before capital spending.
CapEx
$6.3M
Capital spending and related asset purchases.
FCF margin
19.8%
The share of revenue converted into free cash flow.
TTM FCF yield
11.2%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $190.3M | $34.1M | $6.1M | $28.0M | 14.7% |
| 2026-03-31 | $206.8M | $47.3M | $6.3M | $41.0M | 19.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 3711.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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.
Sequential operating cash flow improvement
The increase in operating cash flow from the prior quarter was the most notable change among the metrics, as it rose while capital expenditure remained nearly stable, leading to a higher free cash flow and an improved margin.
The higher operating cash flow was the primary reason free cash flow and its margin improved sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from the previous quarter, driving a higher free cash flow, while capital expenditure remained relatively stable. The company noted that its cash and cash equivalents decreased during the quarter, attributing the change to financing activities including share repurchases and acquisition-related payments, partially offset by operating cash flows.
Sequentially, revenue, operating cash flow, and free cash flow all improved, and the free cash flow margin strengthened. Year over year, revenue was higher but operating cash flow was lower, and free cash flow was slightly lower with a weaker margin.
Monitor the trend in operating cash flow relative to revenue growth, as the year-over-year decline in conversion efficiency suggests a shift in cash generation.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $1.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 11.2% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.