Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Current quarter free cash flow turned positive compared to the same quarter last year, though it decreased significantly from the prior quarter. The improvement was driven by lower capital spending and slightly higher operating cash flow relative to the year-ago period.
- Revenue was slightly lower than both the prior quarter and the same quarter last year. Operating cash flow improved from the year-ago quarter but fell sharply from the previous quarter. Capital expenditure decreased year over year but increased sequentially. As a result, free cash flow margin turned positive from negative a year ago but weakened substantially from the prior quarter.
- Compared to the immediately preceding quarter, free cash flow and margin were much lower due to a large decline in operating cash flow and a rise in capital expenditure. Compared to the same quarter one year earlier, free cash flow improved from negative to positive, with higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$76.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$273.0M
Cash generated by operations before capital spending.
CapEx
$197.0M
Capital spending and related asset purchases.
FCF margin
1.6%
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 | $5.1B | $643.0M | $226.0M | $417.0M | 8.3% |
| 2024-09-30 | $4.9B | $499.0M | $173.0M | $326.0M | 6.7% |
| 2024-12-31 | $4.9B | $1.1B | $166.0M | $894.0M | 18.2% |
| 2025-03-31 | $4.8B | $273.0M | $197.0M | $76.0M | 1.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -690.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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.
Improved free cash flow versus prior year
The current quarter's free cash flow turned positive compared to the same quarter last year, supported by a reduction in capital expenditure and a modest increase in operating cash flow.
This shift from negative to positive free cash flow strengthens the company's cash generation relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than both the prior quarter and the same quarter last year. Operating cash flow improved from the year-ago quarter but fell sharply from the previous quarter. Capital expenditure decreased year over year but increased sequentially. As a result, free cash flow margin turned positive from negative a year ago but weakened substantially from the prior quarter.
Compared to the immediately preceding quarter, free cash flow and margin were much lower due to a large decline in operating cash flow and a rise in capital expenditure. Compared to the same quarter one year earlier, free cash flow improved from negative to positive, with higher operating cash flow and lower capital expenditure.
Monitor the trajectory of operating cash flow, as it showed significant variation between periods.