Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow narrowed sharply as operating cash flow declined while capital expenditure remained stable. Revenue was slightly lower than both the prior quarter and the same quarter last year.
- Operating cash flow as a proportion of revenue weakened, leading to a lower free cash flow margin. Capital expenditure was nearly unchanged, so the decline in free cash flow was driven entirely by reduced cash generation from operations.
- Compared to the prior quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin were also lower, while revenue was slightly 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
$32.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$132.3M
Cash generated by operations before capital spending.
CapEx
$100.0M
Capital spending and related asset purchases.
FCF margin
0.9%
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 | $4.5B | $452.1M | $88.1M | $364.0M | 8.2% |
| 2024-09-30 | $4.2B | $730.0M | $99.6M | $630.4M | 14.9% |
| 2024-12-31 | $3.8B | $373.5M | $99.7M | $273.8M | 7.2% |
| 2025-03-31 | $3.7B | $132.3M | $100.0M | $32.4M | 0.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 33.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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 Contraction
Operating cash flow was lower sequentially and year-over-year, while capital expenditure remained broadly stable. This caused free cash flow to decline disproportionately.
The free cash flow margin weakened to a level well below both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened, leading to a lower free cash flow margin. Capital expenditure was nearly unchanged, so the decline in free cash flow was driven entirely by reduced cash generation from operations.
Compared to the prior quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin were also lower, while revenue was slightly lower.
Monitor whether operating cash flow can recover toward prior levels, as it was the primary factor behind the drop in free cash flow.