Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year, but operating cash flow fell sharply, resulting in a significantly lower free cash flow and margin. Cash conversion weakened as the combination of higher capital expenditure and a much lower operating cash flow reduced free cash flow.
- Despite higher revenue, operating cash flow dropped substantially, and capital expenditure rose relative to the previous quarter, causing free cash flow and free cash flow margin to decline markedly from both comparisons.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year ago, revenue was higher while operating cash flow, free cash flow, and margin were also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$220.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$31.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$41.1M
Cash generated by operations before capital spending.
CapEx
$10.1M
Capital spending and related asset purchases.
FCF margin
9.8%
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 | $306.1M | $75.5M | $18.0M | $57.5M | 18.8% |
| 2024-09-30 | $289.5M | $63.9M | $9.2M | $54.7M | 18.9% |
| 2024-12-31 | $297.0M | $84.3M | $6.8M | $77.5M | 26.1% |
| 2025-03-31 | $316.2M | $41.1M | $10.1M | $31.0M | 9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 137.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Operating Cash Flow Decline
Revenue increased, but operating cash flow fell significantly from both the prior quarter and the year-ago period, driving free cash flow and margin lower. Capital expenditure was higher than the previous quarter but lower than a year ago, yet the drop in operating cash flow outweighed those changes.
The decline in operating cash flow was the strongest observable driver of the weakened free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow dropped substantially, and capital expenditure rose relative to the previous quarter, causing free cash flow and free cash flow margin to decline markedly from both comparisons.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year ago, revenue was higher while operating cash flow, free cash flow, and margin were also lower.
Monitor operating cash flow, as its sudden decline was the primary factor behind the weakened free cash flow generation.