Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow improved sequentially but weakened year-over-year, resulting in a free cash flow margin that was higher than the prior quarter yet lower than the year-ago quarter.
- Revenue declined while operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin improved from the prior quarter but fell from the year-ago quarter, reflecting a mixed conversion trend.
- Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were higher. Compared to the year-ago quarter, revenue, operating cash flow, and free cash flow were all lower, with the margin also weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$419.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$149.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$155.6M
Cash generated by operations before capital spending.
CapEx
$6.6M
Capital spending and related asset purchases.
FCF margin
17.7%
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 |
|---|---|---|---|---|---|
| 2024-06-28 | $870.8M | $87.6M | $14.3M | $73.3M | 8.4% |
| 2024-09-27 | $875.8M | $94.9M | $6.4M | $88.5M | 10.1% |
| 2025-01-03 | $983.4M | $115.1M | $6.1M | $109.0M | 11.1% |
| 2025-04-04 | $840.6M | $155.6M | $6.6M | $149.0M | 17.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 223.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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.
Year-over-year operating cash flow decline
Operating cash flow was lower than the same quarter last year. According to the filing, this decrease was primarily driven by higher tax and incentive bonus payments, partially offset by lower net working capital requirements from a shift toward software and subscription revenue.
The decline in operating cash flow contributed to a free cash flow margin that was lower than the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined while operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin improved from the prior quarter but fell from the year-ago quarter, reflecting a mixed conversion trend.
Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were higher. Compared to the year-ago quarter, revenue, operating cash flow, and free cash flow were all lower, with the margin also weaker.
Monitor the impact of higher tax and incentive bonus payments on operating cash flow, as noted in the filing.