Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sharply from the prior quarter and also declined from the same quarter last year. Operating cash flow was the primary driver of the lower free cash flow.
- Revenue was slightly lower than the prior quarter but higher than the year-ago quarter. Operating cash flow decreased significantly compared to both periods, leading to a lower free cash flow and a narrower free cash flow margin.
- Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were substantially lower, resulting in a much weaker margin. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, producing a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$222.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$259.3M
Cash generated by operations before capital spending.
CapEx
$37.1M
Capital spending and related asset purchases.
FCF margin
9.1%
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 | $2.5B | $625.8M | $33.5M | $592.3M | 24.0% |
| 2024-09-30 | $2.5B | $935.6M | $35.0M | $900.6M | 36.5% |
| 2024-12-31 | $2.5B | $760.9M | $39.3M | $721.6M | 29.4% |
| 2025-03-31 | $2.4B | $259.3M | $37.1M | $222.2M | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 Decline
Operating cash flow was the strongest observable driver of the lower free cash flow. The filing notes that the year-over-year reduction was due in part to an upfront payment and higher employee-benefit payments.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than the year-ago quarter. Operating cash flow decreased significantly compared to both periods, leading to a lower free cash flow and a narrower free cash flow margin.
Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were substantially lower, resulting in a much weaker margin. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, producing a weakened margin.
Monitor the trend in operating cash flow, as it declined significantly from both the prior quarter and the year-ago period.