Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter showed a decrease in operating cash flow and free cash flow relative to the immediately preceding quarter, though both metrics improved compared to the same quarter one year earlier. The free cash flow margin contracted sequentially but expanded significantly year-over-year.
- Revenue increased from the prior quarter and from the year-ago quarter. Operating cash flow was higher than the year-ago level but lower than the prior quarter. Capital expenditure rose slightly versus both periods. Free cash flow followed the pattern of operating cash flow, and the free cash flow margin declined sequentially while improving markedly from the year-ago period.
- Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all weakened. Compared with the same quarter one year earlier, each of these metrics improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$304.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$310.3M
Cash generated by operations before capital spending.
CapEx
$6.2M
Capital spending and related asset purchases.
FCF margin
34.4%
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 | $678.1M | $144.2M | $2.9M | $141.3M | 20.8% |
| 2024-09-30 | $725.5M | $419.8M | $4.0M | $415.8M | 57.3% |
| 2024-12-31 | $827.5M | $460.3M | $3.1M | $457.2M | 55.3% |
| 2025-03-31 | $883.9M | $310.3M | $6.2M | $304.1M | 34.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 142.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Year-over-Year Cash Flow Growth
Operating cash flow and free cash flow were both substantially higher than the same quarter one year earlier, reflecting improved cash generation from operations.
The year-over-year improvement in free cash flow and its margin was the strongest observable driver of the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and from the year-ago quarter. Operating cash flow was higher than the year-ago level but lower than the prior quarter. Capital expenditure rose slightly versus both periods. Free cash flow followed the pattern of operating cash flow, and the free cash flow margin declined sequentially while improving markedly from the year-ago period.
Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all weakened. Compared with the same quarter one year earlier, each of these metrics improved.
Monitor the trajectory of operating cash flow given its decline from the prior quarter despite higher revenue.