Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly versus the prior quarter and was higher than the year-ago period.
- Operating cash flow as a proportion of revenue was higher than in both comparison periods, driving a free cash flow margin that improved from the prior quarter and was above the year-ago level. Capital expenditure remained stable in absolute terms across all three quarters.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was substantially higher, and free cash flow was higher, resulting in a much improved free cash flow margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow was higher, with the free cash flow margin also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$985.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$391.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$444.7M
Cash generated by operations before capital spending.
CapEx
$53.7M
Capital spending and related asset purchases.
FCF margin
51.9%
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 | $716.8M | $211.7M | $57.8M | $153.9M | 21.5% |
| 2024-09-30 | $725.3M | $296.2M | $55.5M | $240.7M | 33.2% |
| 2024-12-31 | $735.6M | $255.4M | $55.4M | $200.0M | 27.2% |
| 2025-03-31 | $753.0M | $444.7M | $53.7M | $391.0M | 51.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 168.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.1% | 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 Strength
Operating cash flow increased more than revenue compared to both the prior quarter and the year-ago quarter, leading to a higher free cash flow margin. Capital expenditure was essentially unchanged, so the entire improvement in free cash flow came from stronger cash generation from operations.
This quarter's free cash flow margin reached a level higher than both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than in both comparison periods, driving a free cash flow margin that improved from the prior quarter and was above the year-ago level. Capital expenditure remained stable in absolute terms across all three quarters.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was substantially higher, and free cash flow was higher, resulting in a much improved free cash flow margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow was higher, with the free cash flow margin also higher.
Monitor the trend in operating cash flow relative to revenue, as its increase was the primary factor behind the margin improvement this quarter.