Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sharply compared to both the prior quarter and the same quarter last year, driven by a significant increase in operating cash flow. Revenue was stable sequentially and higher year-over-year, while capital expenditure remained relatively unchanged.
- Operating cash flow converted into free cash flow at a high rate, as capital expenditure was minimal relative to operating cash flow. The free cash flow margin expanded substantially from the prior quarter and the year-ago period, reflecting stronger cash generation from revenue.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher, while revenue was stable. Versus the same quarter one year earlier, revenue was higher, and operating cash flow and free cash flow were also higher, with free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$557.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$578.7M
Cash generated by operations before capital spending.
CapEx
$20.8M
Capital spending and related asset purchases.
FCF margin
43.2%
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 | $1.2B | $440.1M | $24.9M | $415.2M | 33.9% |
| 2024-09-30 | $1.2B | $325.5M | $17.8M | $307.7M | 25.1% |
| 2024-12-31 | $1.3B | $308.6M | $20.6M | $288.0M | 22.5% |
| 2025-03-31 | $1.3B | $578.7M | $20.8M | $557.9M | 43.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $269.6M | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, while revenue showed only modest changes. This drove a significant improvement in free cash flow and free cash flow margin.
The quarter's cash conversion efficiency was the strongest observable factor, lifting free cash flow margin to a level well above recent comparisons.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow at a high rate, as capital expenditure was minimal relative to operating cash flow. The free cash flow margin expanded substantially from the prior quarter and the year-ago period, reflecting stronger cash generation from revenue.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher, while revenue was stable. Versus the same quarter one year earlier, revenue was higher, and operating cash flow and free cash flow were also higher, with free cash flow margin improved.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.