Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a year ago, driven by a significant improvement in operating cash flow. However, free cash flow and margin declined from the prior quarter as revenue and operating cash flow both decreased.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow improved markedly from the negative level a year earlier, though it decreased from the prior quarter. Capital expenditure increased relative to both comparison periods, resulting in free cash flow that was positive and higher than a year ago but lower than the prior quarter. The free cash flow margin strengthened versus a year ago but weakened sequentially.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Compared to the same quarter a year ago, revenue, operating cash flow, free cash flow, and margin all improved, with free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$608.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$97.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$161.6M
Cash generated by operations before capital spending.
CapEx
$64.0M
Capital spending and related asset purchases.
FCF margin
14.2%
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 | $729.9M | $216.1M | $44.8M | $171.2M | 23.5% |
| 2024-09-29 | $737.3M | $166.3M | $51.8M | $114.4M | 15.5% |
| 2024-12-31 | $752.9M | $282.6M | $57.4M | $225.2M | 29.9% |
| 2025-03-30 | $685.7M | $161.6M | $64.0M | $97.6M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | 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 Recovery
Operating cash flow improved substantially from the negative level a year ago, turning free cash flow positive. The filing notes that changes in operating assets and liabilities provided cash, driven by an increase in accounts payable and a decrease in accounts receivable.
This recovery was the primary factor enabling free cash flow to turn positive compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow improved markedly from the negative level a year earlier, though it decreased from the prior quarter. Capital expenditure increased relative to both comparison periods, resulting in free cash flow that was positive and higher than a year ago but lower than the prior quarter. The free cash flow margin strengthened versus a year ago but weakened sequentially.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Compared to the same quarter a year ago, revenue, operating cash flow, free cash flow, and margin all improved, with free cash flow turning from negative to positive.
Monitor the trend in capital expenditure, which increased sequentially and year-over-year, as it directly reduces free cash flow.