Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, with free cash flow margin rising to a level higher than both the preceding and year-ago quarters. Operating cash flow was the primary driver, while capital expenditure remained a modest use of cash.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from the prior quarter and was higher than the year-ago period, leading to a free cash flow margin that was higher than both comparison periods. Capital expenditure was lower than both the prior and year-ago quarters.
- Compared to the prior quarter, free cash flow and margin were higher, driven by a stronger operating cash flow despite slightly lower revenue. Versus the same quarter one year earlier, free cash flow and margin were also higher, with revenue and operating cash flow both improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$36.0M
Capital spending and related asset purchases.
FCF margin
36.8%
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 | $4.4B | $1.7B | $17.0M | $1.7B | 38.8% |
| 2024-09-30 | $4.6B | $3.0B | $49.0M | $3.0B | 65.8% |
| 2024-12-31 | $4.6B | $383.0M | $58.0M | $325.0M | 7.0% |
| 2025-03-31 | $4.5B | $1.7B | $36.0M | $1.6B | 36.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 283.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 Strength
Operating cash flow was the dominant driver of free cash flow, increasing significantly from the prior quarter and rising from the year-ago period. This occurred even as revenue was slightly lower sequentially, indicating a higher conversion of revenue into cash.
The elevated operating cash flow directly lifted free cash flow and margin to levels higher than both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from the prior quarter and was higher than the year-ago period, leading to a free cash flow margin that was higher than both comparison periods. Capital expenditure was lower than both the prior and year-ago quarters.
Compared to the prior quarter, free cash flow and margin were higher, driven by a stronger operating cash flow despite slightly lower revenue. Versus the same quarter one year earlier, free cash flow and margin were also higher, with revenue and operating cash flow both improved.
Monitor the sustainability of operating cash flow at this elevated level relative to revenue, as it was the strongest factor in the quarter's cash conversion.