Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved compared to the same quarter last year, while the cash conversion margin strengthened from the prior year. Sequentially, however, operating cash flow and free cash flow were lower, and the margin narrowed.
- Revenue was higher than the previous quarter and also higher than the same quarter one year earlier. Operating cash flow was lower than the previous quarter but higher than the year-ago quarter. Capital expenditure increased from both comparison periods, while free cash flow and free cash flow margin decreased sequentially but increased year over year.
- Compared to the prior quarter, free cash flow was lower and the margin weakened, primarily due to higher capital expenditure and lower operating cash flow. Compared to the same quarter one year earlier, free cash flow was higher and the margin improved, supported by higher operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$291.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$583.7M
Cash generated by operations before capital spending.
CapEx
$292.7M
Capital spending and related asset purchases.
FCF margin
7.4%
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 |
|---|---|---|---|---|---|
| 2024-02-10 | $3.9B | $434.1M | $255.4M | $178.7M | 4.6% |
| 2024-05-04 | $4.2B | $669.5M | $235.1M | $434.4M | 10.3% |
| 2024-11-23 | $4.3B | $811.8M | $247.0M | $564.8M | 13.2% |
| 2025-02-15 | $4.0B | $583.7M | $292.7M | $291.0M | 7.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.4% | 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.
Year-over-year cash flow improvement
Relative to the same quarter last year, operating cash flow and free cash flow were higher, and the free cash flow margin strengthened. This is the strongest observable driver in the data.
The year-over-year improvement in cash conversion contributed to a stronger free cash flow position compared to the prior year quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the previous quarter and also higher than the same quarter one year earlier. Operating cash flow was lower than the previous quarter but higher than the year-ago quarter. Capital expenditure increased from both comparison periods, while free cash flow and free cash flow margin decreased sequentially but increased year over year.
Compared to the prior quarter, free cash flow was lower and the margin weakened, primarily due to higher capital expenditure and lower operating cash flow. Compared to the same quarter one year earlier, free cash flow was higher and the margin improved, supported by higher operating cash flow.
Monitor the level of capital expenditure, which increased from both the prior quarter and the year-ago period.