Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined markedly from the prior quarter but rose slightly versus the year-ago quarter. Free cash flow and free cash flow margin reached their highest observed levels despite the lower revenue, driven by strong operating cash flow.
- Operating cash flow improved sharply versus the prior quarter and remained stable compared to a year ago, while capital expenditure was moderate. This combination produced a free cash flow margin above a third of revenue, reflecting a high cash conversion rate from revenue to free cash flow.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, resulting in a stronger free cash flow margin. Versus the same quarter one year ago, revenue was slightly higher while operating cash flow was nearly unchanged, leading to a similar level of cash generation efficiency.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$234.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$260.0M
Cash generated by operations before capital spending.
CapEx
$26.0M
Capital spending and related asset purchases.
FCF margin
35.3%
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 |
|---|---|---|---|---|---|
| 2024-06-29 | $708.5M | $54.5M | n/a | n/a | n/a |
| 2024-09-28 | $740.3M | $204.6M | n/a | n/a | n/a |
| 2024-12-31 | $872.7M | $240.1M | n/a | n/a | n/a |
| 2025-03-29 | $662.0M | $260.0M | $26.0M | $234.0M | 35.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 193.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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.
Strong Operating Cash Flow Conversion
Operating cash flow was materially higher than the prior quarter and essentially flat versus the prior year, even as revenue changed considerably. The filing notes that higher net income was offset by higher accounts receivable due to an increase in sales volume, but overall cash generation remained robust.
This driver enabled free cash flow margin to reach its highest observed level, despite a decline in revenue from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved sharply versus the prior quarter and remained stable compared to a year ago, while capital expenditure was moderate. This combination produced a free cash flow margin above a third of revenue, reflecting a high cash conversion rate from revenue to free cash flow.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, resulting in a stronger free cash flow margin. Versus the same quarter one year ago, revenue was slightly higher while operating cash flow was nearly unchanged, leading to a similar level of cash generation efficiency.
Monitor the trend in deferred revenue and customer advances, which increased substantially in the filing period and are a key factor in operating cash flow.