Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved relative to the year-ago quarter, while free cash flow was lower than both the preceding quarter and the prior year quarter. The free cash flow margin weakened compared to both periods.
- Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow was lower sequentially, yet higher year-over-year. Capital expenditure decreased sequentially, contributing to free cash flow that was lower than both the prior quarter and the year-ago quarter.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all moved lower. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$291.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$51.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$63.8M
Cash generated by operations before capital spending.
CapEx
$12.3M
Capital spending and related asset purchases.
FCF margin
9.1%
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 | $488.5M | $86.8M | $22.5M | $64.3M | 13.2% |
| 2024-09-30 | $543.9M | $108.3M | $26.7M | $81.6M | 15.0% |
| 2024-12-31 | $597.5M | $147.5M | $53.6M | $93.9M | 15.7% |
| 2025-03-31 | $569.0M | $63.8M | $12.3M | $51.5M | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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.
Free Cash Flow Margin Weakening
Free cash flow margin declined compared to both the preceding quarter and the year-ago quarter. Operating cash flow as a percentage of revenue also appears to have weakened relative to those periods.
A lower proportion of revenue converted into free cash flow compared to the prior comparative periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow was lower sequentially, yet higher year-over-year. Capital expenditure decreased sequentially, contributing to free cash flow that was lower than both the prior quarter and the year-ago quarter.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all moved lower. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow and free cash flow margin were lower.
Monitor the trend in capital expenditure given its noticeable decline from the preceding quarter.