Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than both the prior quarter and the year-ago quarter, causing free cash flow margin to decline to a single-digit level. The current quarter's cash conversion was the weakest among the three periods.
- Operating cash flow represented a small fraction of revenue, and after capital expenditure, free cash flow margin was in the low single digits. The conversion of revenue into free cash flow was notably lower than in the comparable periods.
- Compared to the immediate prior quarter, revenue, operating cash flow, and free cash flow all decreased substantially, with free cash flow margin falling by a significant margin. Relative to the year-ago quarter, operating cash flow and free cash flow were much lower, while revenue was only slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$224.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$22.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$27.6M
Cash generated by operations before capital spending.
CapEx
$5.4M
Capital spending and related asset purchases.
FCF margin
7.8%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $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% |
| 2025-09-30 | $286.6M | $27.6M | $5.4M | $22.2M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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
Operating cash flow decreased sharply from both the prior quarter and the year-ago period, while revenue remained relatively stable. This driver was the primary factor in the weakened free cash flow margin.
The decline in operating cash flow reduced free cash flow margin to a single-digit level, significantly below the margins of the comparable periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow represented a small fraction of revenue, and after capital expenditure, free cash flow margin was in the low single digits. The conversion of revenue into free cash flow was notably lower than in the comparable periods.
Compared to the immediate prior quarter, revenue, operating cash flow, and free cash flow all decreased substantially, with free cash flow margin falling by a significant margin. Relative to the year-ago quarter, operating cash flow and free cash flow were much lower, while revenue was only slightly lower.
Monitor the company's cash balance, which declined from the prior quarter, and the future cash requirement for the mandatory acquisition of the remaining interest in Wilson Wolf.