Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year but weakened from the prior quarter. The cash conversion rate was lower than the preceding quarter despite higher revenue.
- Revenue was higher than the prior quarter, yet operating cash flow was lower, resulting in a lower free cash flow margin. Capital expenditure decreased from both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$171.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$199.0M
Cash generated by operations before capital spending.
CapEx
$28.0M
Capital spending and related asset purchases.
FCF margin
8.5%
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 | $2.1B | $279.0M | $41.0M | $238.0M | 11.6% |
| 2024-09-30 | $2.0B | $432.0M | $65.0M | $367.0M | 18.0% |
| 2024-12-31 | $1.9B | $364.0M | $71.0M | $293.0M | 15.6% |
| 2025-03-31 | $2.0B | $199.0M | $28.0M | $171.0M | 8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 Decline
Operating cash flow was lower than the prior quarter despite higher revenue, which was the strongest observable driver of the sequential decline in free cash flow.
This weakened free cash flow and free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, yet operating cash flow was lower, resulting in a lower free cash flow margin. Capital expenditure decreased from both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher.
Monitor the relationship between revenue and operating cash flow, as revenue increased but cash generation weakened sequentially.