Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and the same quarter last year. Operating cash flow and free cash flow improved, leading to a higher free cash flow margin.
- Operating cash flow as a proportion of revenue increased, while capital expenditure was lower than both the prior quarter and the year-ago quarter. This combination resulted in free cash flow and free cash flow margin rising.
- Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow and free cash flow were higher, and capital expenditure was lower. Versus the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$478.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$507.6M
Cash generated by operations before capital spending.
CapEx
$29.1M
Capital spending and related asset purchases.
FCF margin
25.8%
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 | $1.9B | $436.3M | $59.8M | $376.5M | 19.8% |
| 2024-09-30 | $1.9B | $618.4M | $47.0M | $571.4M | 30.4% |
| 2024-12-31 | $1.8B | $461.7M | $91.3M | $370.4M | 20.4% |
| 2025-03-31 | $1.9B | $507.6M | $29.1M | $478.5M | 25.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.7B | 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 increased compared to both the prior quarter and the year-ago quarter, while revenue remained relatively stable. This drove the improvement in free cash flow and free cash flow margin.
Higher operating cash flow relative to revenue strengthened cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased, while capital expenditure was lower than both the prior quarter and the year-ago quarter. This combination resulted in free cash flow and free cash flow margin rising.
Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow and free cash flow were higher, and capital expenditure was lower. Versus the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were higher, and capital expenditure was lower.
Monitor the level of capital expenditure in upcoming quarters, as it was notably lower in the current period.