Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the preceding quarter but higher than the same quarter one year earlier. Operating cash flow and free cash flow followed a similar pattern, resulting in a free cash flow margin that weakened sequentially but improved year-over-year.
- The company converted a lower share of revenue into free cash flow compared to the prior quarter, as operating cash flow decreased more than revenue. Capital expenditure remained relatively stable, so the change in free cash flow margin was driven by operating cash flow.
- Compared to the preceding quarter, free cash flow margin weakened significantly. Compared to the same quarter one year earlier, the margin improved.
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
$200.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$207.8M
Cash generated by operations before capital spending.
CapEx
$7.1M
Capital spending and related asset purchases.
FCF margin
8.4%
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 | $2.6B | $232.7M | $6.4M | $226.3M | 8.7% |
| 2024-09-30 | $2.7B | $358.3M | $8.2M | $350.1M | 12.8% |
| 2024-12-31 | $2.8B | $637.0M | $5.6M | $631.5M | 22.2% |
| 2025-03-31 | $2.4B | $207.8M | $7.1M | $200.7M | 8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 Volatility
Operating cash flow was substantially lower than the prior quarter, while revenue also decreased but to a lesser extent, causing the free cash flow margin to contract.
This volatility in cash conversion may affect future free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a lower share of revenue into free cash flow compared to the prior quarter, as operating cash flow decreased more than revenue. Capital expenditure remained relatively stable, so the change in free cash flow margin was driven by operating cash flow.
Compared to the preceding quarter, free cash flow margin weakened significantly. Compared to the same quarter one year earlier, the margin improved.
Monitor the company's ability to sustain operating cash flow levels given its reliance on cash holdings and credit facilities as noted in the filing.