Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved from the same quarter last year but weakened sequentially. Revenue was lower than the prior quarter yet higher than the year-ago period.
- Cash conversion improved significantly compared to the same quarter last year, as operating cash flow grew more than revenue while capital expenditure remained similar. However, it weakened from the prior quarter, with operating cash flow decreasing despite a lower capital expenditure.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, with free cash flow margin also declining. Compared to the same quarter one year earlier, all metrics were higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$266.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$303.3M
Cash generated by operations before capital spending.
CapEx
$36.5M
Capital spending and related asset purchases.
FCF margin
13.1%
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 | $2.0B | $381.5M | $34.1M | $347.4M | 17.8% |
| 2024-09-30 | $2.1B | $375.1M | $36.4M | $338.7M | 16.3% |
| 2024-12-31 | $2.3B | $425.2M | $60.7M | $364.5M | 15.5% |
| 2025-03-31 | $2.0B | $303.3M | $36.5M | $266.8M | 13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 growth
Operating cash flow was higher than the year-ago quarter, supported by a larger revenue base and stable capital expenditure. This drove a higher free cash flow margin.
The improvement in operating cash flow contribution was the primary factor behind the year-over-year free cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion improved significantly compared to the same quarter last year, as operating cash flow grew more than revenue while capital expenditure remained similar. However, it weakened from the prior quarter, with operating cash flow decreasing despite a lower capital expenditure.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, with free cash flow margin also declining. Compared to the same quarter one year earlier, all metrics were higher, and free cash flow margin improved.
Monitor the trend of free cash flow margin, which declined from the prior quarter even though capital expenditure was lower.