Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow was slightly lower despite much higher revenue, as operating cash flow was nearly unchanged and capital expenditure increased.
- Revenue rose while operating cash flow increased at a faster pace than revenue, leading to a higher free cash flow margin than the prior quarter. The margin remained below the level of the same quarter last year, as capital expenditure consumed a larger share of operating cash flow.
- Compared to the prior quarter, free cash flow and free cash flow margin both improved, with operating cash flow higher and capital expenditure lower. Versus the same quarter one year earlier, free cash flow and margin were lower, as revenue was higher but operating cash flow was nearly flat and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$626.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$216.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$256.4M
Cash generated by operations before capital spending.
CapEx
$40.3M
Capital spending and related asset purchases.
FCF margin
33.9%
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 | $507.4M | $141.0M | $31.5M | $109.5M | 21.6% |
| 2024-09-30 | $620.1M | $231.7M | $33.8M | $197.9M | 31.9% |
| 2024-12-31 | $621.7M | $167.7M | $64.8M | $102.9M | 16.5% |
| 2025-03-31 | $637.6M | $256.4M | $40.3M | $216.0M | 33.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | 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 Recovery
Operating cash flow rose substantially from the prior quarter, driving the improvement in free cash flow. The increase occurred even as revenue grew modestly, indicating stronger cash generation from operations.
Higher operating cash flow was the primary factor behind the sequential improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased at a faster pace than revenue, leading to a higher free cash flow margin than the prior quarter. The margin remained below the level of the same quarter last year, as capital expenditure consumed a larger share of operating cash flow.
Compared to the prior quarter, free cash flow and free cash flow margin both improved, with operating cash flow higher and capital expenditure lower. Versus the same quarter one year earlier, free cash flow and margin were lower, as revenue was higher but operating cash flow was nearly flat and capital expenditure was higher.
Monitor the trend in capital expenditure, which increased from the year-ago quarter and may affect future free cash flow conversion.