Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened from the prior quarter but improved relative to the year-ago quarter.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure increased sequentially. The resulting free cash flow was lower than the prior quarter and higher than the year-ago quarter, with the free cash flow margin following the same pattern.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Compared to the same quarter one year earlier, all metrics were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$613.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$641.7M
Cash generated by operations before capital spending.
CapEx
$28.4M
Capital spending and related asset purchases.
FCF margin
30.6%
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 | $1.7B | $989.0M | $3.2M | $985.8M | 58.3% |
| 2024-09-30 | $1.8B | $1.2B | $7.0M | $1.2B | 64.5% |
| 2024-12-31 | $1.9B | $1.0B | $12.4M | $1.0B | 52.8% |
| 2025-03-31 | $2.0B | $641.7M | $28.4M | $613.3M | 30.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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.
Cash Conversion Efficiency
Operating cash flow did not keep pace with revenue growth compared to the prior quarter, resulting in a lower free cash flow margin despite higher revenue. This shift in cash conversion efficiency is the strongest observable driver of the quarter's performance.
If this pattern continues, future free cash flow margin may remain under pressure even if revenue grows.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure increased sequentially. The resulting free cash flow was lower than the prior quarter and higher than the year-ago quarter, with the free cash flow margin following the same pattern.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Compared to the same quarter one year earlier, all metrics were higher, and the free cash flow margin improved.
Monitor the relationship between revenue growth and operating cash flow, as the current quarter showed higher revenue but lower cash conversion efficiency.