Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow in the current quarter was lower than both the prior quarter and the same quarter a year earlier, despite revenue remaining comparable. Operating cash flow declined substantially, leading to a weakened free cash flow margin.
- Revenue was stable compared to the prior quarter, but operating cash flow decreased significantly, while capital expenditure was slightly lower than the preceding quarter. The reduction in operating cash flow relative to revenue resulted in a lower free cash flow margin.
- Compared to the preceding quarter, operating cash flow and free cash flow were much lower, and free cash flow margin weakened. Compared to the same quarter one year ago, operating cash flow and free cash flow were also lower, and margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$147.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$191.0M
Cash generated by operations before capital spending.
CapEx
$44.0M
Capital spending and related asset purchases.
FCF margin
5.6%
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 | $2.6B | $235.0M | $46.0M | $189.0M | 7.1% |
| 2024-09-30 | $2.7B | $542.0M | $46.0M | $496.0M | 18.6% |
| 2024-12-31 | $2.6B | $723.0M | $84.0M | $639.0M | 24.7% |
| 2025-03-31 | $2.6B | $191.0M | $44.0M | $147.0M | 5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 45.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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.
Receivables-driven cash outflow
The filing indicates that increased net income was more than offset by a large negative cash impact from changes in receivables, driven by the revolving receivables program and timing. This was the primary observable factor behind the decline in operating cash flow.
The significant cash outflow from receivables caused operating cash flow and free cash flow to be substantially lower than in prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, but operating cash flow decreased significantly, while capital expenditure was slightly lower than the preceding quarter. The reduction in operating cash flow relative to revenue resulted in a lower free cash flow margin.
Compared to the preceding quarter, operating cash flow and free cash flow were much lower, and free cash flow margin weakened. Compared to the same quarter one year ago, operating cash flow and free cash flow were also lower, and margin declined.
Monitor the impact of the revolving receivables program and timing of receivables on future cash flows, as noted in the filing.