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Our technology business, consisting of our product, professional services, and managed services segments, provides technology solutions. Our technology solutions leverage third-party hardware, software, maintenance and other services with our own advanced professional and managed services.
Operating margin is thin at 6.80%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 22.2%, still solid. Free cash flow declined 141% despite revenue growth, conversion is weakening.
Free cash flow declined 141% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$121M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$2.44B
▲ +22.2% YoY
Net Income (TTM)
$133M
▲ +26.8% YoY
Op. Margin
6.80%
▲ +1.8pp YoY
ROIC
10.88%
▲ +3.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$121M
▼ -140.6% YoY
Op. Cash Flow (TTM)
-$116M
▼ -138.5% YoY
Net Debt
-$394M
Net Cash Position
Cash & Equiv.
$411M
5Y CAGR: +9.3%
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