Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash margin weakened relative to both the prior quarter and the same quarter last year, despite revenue rising. Capital expenditure decreased versus both comparison periods.
- Revenue increased, but the conversion into operating cash flow narrowed, resulting in a lower free cash flow margin for the quarter. Capital expenditure was stable, which limited its impact on the cash conversion pattern.
- Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, and the free cash flow margin contracted. Versus the same quarter a year ago, operating cash flow and free cash flow were also lower, and the margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$593.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$53.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$56.2M
Cash generated by operations before capital spending.
CapEx
$2.3M
Capital spending and related asset purchases.
FCF margin
9.5%
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 | $541.0M | $64.3M | $6.6M | $57.7M | 10.7% |
| 2024-09-30 | $543.3M | $263.7M | $2.9M | $260.8M | 48.0% |
| 2024-12-31 | $541.1M | $224.8M | $3.8M | $221.0M | 40.8% |
| 2025-03-31 | $565.2M | $56.2M | $2.3M | $53.8M | 9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $107.4M | 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 Weakening
Operating cash flow declined compared to both the prior quarter and the same quarter last year, even though revenue increased. This was the primary factor behind the lower free cash flow and margin.
The reduced cash conversion efficiency directly compressed the free cash flow margin and overall cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but the conversion into operating cash flow narrowed, resulting in a lower free cash flow margin for the quarter. Capital expenditure was stable, which limited its impact on the cash conversion pattern.
Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, and the free cash flow margin contracted. Versus the same quarter a year ago, operating cash flow and free cash flow were also lower, and the margin declined.
Monitor whether the operating cash flow level recovers toward the year-ago level, given the notable decline in the current quarter.