Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow declined from both the preceding quarter and the same quarter one year earlier, despite revenue being comparable to the year-ago period. The free cash flow margin weakened, reflecting lower cash conversion efficiency in the current quarter.
- Revenue was similar to the prior quarter and the year-ago period, while operating cash flow was lower than both. Capital expenditure decreased from the previous quarter but increased compared to the year-ago quarter, resulting in free cash flow that was lower than both prior periods. The free cash flow margin consequently weakened.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all were lower. Versus the same quarter one year earlier, revenue was stable, but operating cash flow and free cash flow were lower, and the margin also weakened.
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
$224.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$242.6M
Cash generated by operations before capital spending.
CapEx
$18.0M
Capital spending and related asset purchases.
FCF margin
15.5%
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 | $1.4B | $318.7M | $17.7M | $301.0M | 21.9% |
| 2024-09-29 | $1.4B | $249.8M | $21.1M | $228.7M | 15.8% |
| 2024-12-29 | $1.5B | $332.4M | $29.0M | $303.4M | 20.2% |
| 2025-03-30 | $1.4B | $242.6M | $18.0M | $224.6M | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Decline in Operating Cash Flow
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while revenue remained relatively stable. This drove a reduction in free cash flow and margin.
The decline in free cash flow reduces internally generated funds available for the company's capital requirements, such as working capital, debt service, and potential acquisitions.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was similar to the prior quarter and the year-ago period, while operating cash flow was lower than both. Capital expenditure decreased from the previous quarter but increased compared to the year-ago quarter, resulting in free cash flow that was lower than both prior periods. The free cash flow margin consequently weakened.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all were lower. Versus the same quarter one year earlier, revenue was stable, but operating cash flow and free cash flow were lower, and the margin also weakened.
Monitor the company's cash and debt levels, as cash decreased and debt increased in the quarter due to borrowings for acquisition activity, per the filing.