Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved year-over-year but weakened sequentially, as revenue remained stable while operating cash flow declined from the prior quarter. The free cash flow margin was higher than the same quarter last year but lower than the immediately preceding quarter.
- Revenue was unchanged from the prior quarter, while operating cash flow decreased, leading to a lower free cash flow and margin. Compared to the year-ago quarter, higher revenue and operating cash flow resulted in improved free cash flow and margin, with capital expenditure slightly higher.
- Compared to the prior quarter, revenue was stable, but operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$158.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$178.0M
Cash generated by operations before capital spending.
CapEx
$20.0M
Capital spending and related asset purchases.
FCF margin
12.1%
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 |
|---|---|---|---|---|---|
| 2024-06-29 | $1.2B | $288.0M | $10.0M | $278.0M | 22.8% |
| 2024-09-28 | $1.3B | $294.0M | $17.0M | $277.0M | 22.1% |
| 2024-12-31 | $1.3B | $306.0M | $18.0M | $288.0M | 21.6% |
| 2025-03-29 | $1.3B | $178.0M | $20.0M | $158.0M | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 shift
Operating cash flow was the primary driver of free cash flow changes, being lower than the prior quarter but higher than the year-ago period. This created a mixed sequential and year-over-year comparison.
The sequential decline in operating cash flow reduced free cash flow and margin from the previous quarter, while the year-over-year improvement reflected stronger cash generation relative to the same period last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, while operating cash flow decreased, leading to a lower free cash flow and margin. Compared to the year-ago quarter, higher revenue and operating cash flow resulted in improved free cash flow and margin, with capital expenditure slightly higher.
Compared to the prior quarter, revenue was stable, but operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, and the margin improved.
Monitor the sustainability of operating cash flow, as it declined sequentially despite stable revenue.