Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter but higher than the same quarter last year. The free cash flow margin weakened sequentially but improved compared to the year-ago period.
- Revenue was lower than the prior quarter and higher than the year-ago quarter. Operating cash flow followed a similar pattern, while capital expenditure was lower than the prior quarter and higher than the year-ago quarter. Free cash flow and free cash flow margin were lower sequentially and higher year-over-year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were higher, while free cash flow margin was lower.
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
$333.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$404.0M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
18.6%
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 | $1.8B | $342.0M | $50.0M | $292.0M | 16.6% |
| 2024-09-30 | $1.8B | $471.0M | $52.0M | $419.0M | 22.9% |
| 2024-12-31 | $2.4B | $513.0M | $106.0M | $407.0M | 17.2% |
| 2025-03-31 | $1.8B | $404.0M | $71.0M | $333.0M | 18.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 131.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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 Change
Operating cash flow was lower than the prior quarter and higher than the year-ago quarter. This was the strongest observable driver of free cash flow movement, as capital expenditure changed less in absolute terms.
The sequential decline in operating cash flow directly contributed to the lower free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter and higher than the year-ago quarter. Operating cash flow followed a similar pattern, while capital expenditure was lower than the prior quarter and higher than the year-ago quarter. Free cash flow and free cash flow margin were lower sequentially and higher year-over-year.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were higher, while free cash flow margin was lower.
Monitor the trajectory of capital expenditure relative to operating cash flow, as it was higher year-over-year and lower sequentially.