Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened from the prior quarter as operating cash flow and free cash flow both declined, while revenue also decreased. Compared to the same quarter one year earlier, free cash flow was slightly lower despite similar revenue, reflecting a modestly lower free cash flow margin.
- Revenue was stable compared to the same quarter last year, but operating cash flow was lower, leading to a lower free cash flow margin. Capital expenditure was slightly reduced from both the prior quarter and the year-ago quarter, which partially offset the decline in operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, with free cash flow margin declining. Versus the same quarter one year earlier, revenue was similar, but operating cash flow and free cash flow were slightly lower, resulting in a marginally weaker free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$409.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$709.0M
Cash generated by operations before capital spending.
CapEx
$300.0M
Capital spending and related asset purchases.
FCF margin
6.4%
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 | $7.1B | $348.0M | $292.0M | $56.0M | 0.8% |
| 2024-09-30 | $6.9B | $1.0B | $300.0M | $710.0M | 10.3% |
| 2024-12-31 | $7.4B | $1.2B | $353.0M | $837.0M | 11.4% |
| 2025-03-31 | $6.4B | $709.0M | $300.0M | $409.0M | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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 lower than both the prior quarter and the same quarter last year, while revenue was either lower or stable. This drove the reduction in free cash flow and free cash flow margin.
The lower operating cash flow was the primary factor behind the weakened cash conversion this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the same quarter last year, but operating cash flow was lower, leading to a lower free cash flow margin. Capital expenditure was slightly reduced from both the prior quarter and the year-ago quarter, which partially offset the decline in operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, with free cash flow margin declining. Versus the same quarter one year earlier, revenue was similar, but operating cash flow and free cash flow were slightly lower, resulting in a marginally weaker free cash flow margin.
Monitor the trend in operating cash flow relative to revenue, as it declined from both the prior quarter and the year-ago period despite stable revenue.