Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved meaningfully as operating cash flow rose sharply while capital expenditure remained stable, yielding a positive free cash flow margin. Compared to both the prior quarter and the same quarter last year, revenue and operating cash flow were higher, though free cash flow was lower than a year ago.
- Current quarter revenue increased substantially compared to the prior quarter, and operating cash flow grew at a faster rate, resulting in free cash flow turning positive from negative. However, capital expenditure was slightly higher than the same quarter last year, contributing to a narrower free cash flow margin than a year earlier.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow shifting from negative to positive. Versus the same quarter one year ago, revenue and operating cash flow were higher, but free cash flow and its margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$83.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$922.9M
Cash generated by operations before capital spending.
CapEx
$839.7M
Capital spending and related asset purchases.
FCF margin
4.3%
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 | $701.5M | $411.2M | $713.6M | -$302.4M | -43.1% |
| 2024-09-30 | $657.9M | $330.7M | $808.0M | -$477.3M | -72.5% |
| 2024-12-31 | $1.2B | $282.0M | $891.2M | -$609.2M | -51.8% |
| 2025-03-31 | $2.0B | $922.9M | $839.7M | $83.3M | 4.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 17.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 43.0% | 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.
Stronger revenue and operating cash flow
Revenue improved significantly from the prior quarter in the current period, and operating cash flow increased at an even stronger pace, driving the turnaround in free cash flow. Among all metrics, operating cash flow showed the most pronounced sequential improvement.
This higher cash generation underpinned the return to a positive free cash flow position this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Current quarter revenue increased substantially compared to the prior quarter, and operating cash flow grew at a faster rate, resulting in free cash flow turning positive from negative. However, capital expenditure was slightly higher than the same quarter last year, contributing to a narrower free cash flow margin than a year earlier.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow shifting from negative to positive. Versus the same quarter one year ago, revenue and operating cash flow were higher, but free cash flow and its margin were lower.
Monitor whether capital expenditure remains elevated relative to the year-ago level, as it directly affects free cash flow conversion.