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 versus both periods, as operating cash flow did not keep pace with revenue growth and capital expenditure rose year over year.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure decreased sequentially but increased year over year, resulting in free cash flow that was lower than the prior quarter and higher than the same quarter last year. The free cash flow margin declined from both comparison periods.
- Compared to the prior quarter, revenue improved while operating cash flow and free cash flow both weakened, leading to a lower free cash flow margin. Versus the same quarter last year, revenue and all cash flow metrics were higher, but the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$576.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$764.9M
Cash generated by operations before capital spending.
CapEx
$188.6M
Capital spending and related asset purchases.
FCF margin
12.0%
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 | $3.6B | $664.1M | $141.3M | $522.8M | 14.5% |
| 2024-09-30 | $4.0B | $704.0M | $230.0M | $474.0M | 11.7% |
| 2024-12-31 | $4.3B | $847.1M | $199.8M | $647.3M | 15.0% |
| 2025-03-31 | $4.8B | $764.9M | $188.6M | $576.3M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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 conversion
Revenue increased from both the prior quarter and the year-ago quarter, yet operating cash flow was lower sequentially and only moderately higher year over year. This divergence is the strongest observable driver of the weakened free cash flow margin.
If operating cash flow does not improve relative to revenue, free cash flow margin may remain under pressure.
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 a year ago. Capital expenditure decreased sequentially but increased year over year, resulting in free cash flow that was lower than the prior quarter and higher than the same quarter last year. The free cash flow margin declined from both comparison periods.
Compared to the prior quarter, revenue improved while operating cash flow and free cash flow both weakened, leading to a lower free cash flow margin. Versus the same quarter last year, revenue and all cash flow metrics were higher, but the free cash flow margin was lower.
Monitor the trend in free cash flow margin, which has declined sequentially and year over year despite higher revenue.