Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially and year-over-year, supported by higher revenue and operating cash flow. Capital expenditure remained stable, reinforcing cash conversion efficiency.
- Revenue converted into operating cash flow at a higher rate this quarter, with free cash flow margin rising above the prior quarter and the year-ago level. Low capital expenditure relative to operating cash flow preserved strong cash generation.
- Compared with the preceding quarter, revenue, operating cash flow, free cash flow, and margin all increased. Versus the same quarter one year earlier, revenue and free cash flow were higher, while the margin improved slightly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$819.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$278.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$281.3M
Cash generated by operations before capital spending.
CapEx
$2.8M
Capital spending and related asset purchases.
FCF margin
43.8%
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 | $518.6M | $213.8M | $1.6M | $212.2M | 40.9% |
| 2024-09-30 | $626.5M | $98.1M | $4.5M | $93.6M | 14.9% |
| 2024-12-31 | $565.1M | $238.4M | $2.8M | $235.7M | 41.7% |
| 2025-03-31 | $636.4M | $281.3M | $2.8M | $278.5M | 43.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 171.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue-driven operating cash flow
Higher revenue this quarter compared to both prior periods directly contributed to increased operating cash flow. The company’s subscription model, as noted in the filing, supports consistent billing and cash collection.
Strengthened free cash flow margin without a rise in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue converted into operating cash flow at a higher rate this quarter, with free cash flow margin rising above the prior quarter and the year-ago level. Low capital expenditure relative to operating cash flow preserved strong cash generation.
Compared with the preceding quarter, revenue, operating cash flow, free cash flow, and margin all increased. Versus the same quarter one year earlier, revenue and free cash flow were higher, while the margin improved slightly.
Monitor whether free cash flow margin can sustain its recent improvement as revenue grows.