Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin improved substantially compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital spending. Revenue was stable relative to the prior quarter and higher than a year ago.
- Operating cash flow increased significantly from the prior quarter and from a year ago, while capital expenditure decreased, resulting in a much higher free cash flow and margin.
- Compared to the immediately preceding quarter, free cash flow and margin improved markedly due to a sharp rise in operating cash flow and a reduction in capital expenditure. Versus the same quarter one year earlier, both operating cash flow and free cash flow were higher, with a lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$256.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$93.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$98.2M
Cash generated by operations before capital spending.
CapEx
$4.9M
Capital spending and related asset purchases.
FCF margin
29.4%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $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% |
| 2025-06-30 | $317.0M | $98.2M | $4.9M | $93.3M | 29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -527.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 Improvement
Operating cash flow rose sharply from the prior quarter and from a year ago, driving the increase in free cash flow.
The improvement in operating cash flow was the primary factor behind the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased significantly from the prior quarter and from a year ago, while capital expenditure decreased, resulting in a much higher free cash flow and margin.
Compared to the immediately preceding quarter, free cash flow and margin improved markedly due to a sharp rise in operating cash flow and a reduction in capital expenditure. Versus the same quarter one year earlier, both operating cash flow and free cash flow were higher, with a lower capital expenditure.
Monitor the level of capital expenditure, which declined notably this quarter.