Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly compared to the prior quarter and was higher than the same quarter last year. The improvement was driven by a substantial rise in operating cash flow relative to revenue.
- Revenue was lower than the prior quarter but higher than the year-ago quarter, while operating cash flow was much higher than both periods. Capital expenditure rose slightly from the prior quarter but declined from the year-ago quarter, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow margin improved as operating cash flow increased more than proportionally relative to revenue. Versus the same quarter one year ago, margin also improved, supported by higher operating cash flow and slightly lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$121.0M
Capital spending and related asset purchases.
FCF margin
66.4%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $5.9B | $2.5B | $146.0M | $2.4B | 40.6% |
| 2024-09-30 | $8.0B | $2.4B | $77.0M | $2.3B | 28.7% |
| 2024-12-31 | $5.5B | $721.0M | $76.0M | $645.0M | 11.8% |
| 2025-03-31 | $4.8B | $3.3B | $121.0M | $3.2B | 66.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$446.0M | 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 Strength
The quarter's operating cash flow was significantly higher than both the prior quarter and the year-ago period, while capital expenditure remained relatively stable. This drove a strong improvement in free cash flow margin.
The higher free cash flow provides greater financial flexibility for the company.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter, while operating cash flow was much higher than both periods. Capital expenditure rose slightly from the prior quarter but declined from the year-ago quarter, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow margin improved as operating cash flow increased more than proportionally relative to revenue. Versus the same quarter one year ago, margin also improved, supported by higher operating cash flow and slightly lower capital expenditure.
Monitor the change in deferred merchant bookings, which increased in the balance sheet compared to the prior quarter-end.