Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position a year ago, though it decreased sharply from the preceding quarter.
- Operating cash flow as a share of revenue was lower than the prior quarter but higher than the same quarter last year. Capital expenditure was lower than the prior quarter and slightly higher than a year ago, resulting in a free cash flow margin that weakened from the prior quarter but improved from the same quarter last year.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$354.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$541.0M
Cash generated by operations before capital spending.
CapEx
$187.0M
Capital spending and related asset purchases.
FCF margin
7.6%
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 | $4.1B | $813.0M | $155.0M | $658.0M | 16.0% |
| 2024-09-30 | $4.2B | $1.0B | $179.0M | $823.0M | 19.6% |
| 2024-12-31 | $4.6B | $1.5B | $277.0M | $1.2B | 25.8% |
| 2025-03-31 | $4.7B | $541.0M | $187.0M | $354.0M | 7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 52.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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.
Revenue Growth Supporting Cash Generation
Revenue was higher than both the prior quarter and the same quarter last year, providing a larger base for cash generation. Operating cash flow improved significantly from a year ago, contributing to a positive free cash flow.
Higher revenue was the strongest observable driver, as it supported improved operating cash flow and free cash flow compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was lower than the prior quarter but higher than the same quarter last year. Capital expenditure was lower than the prior quarter and slightly higher than a year ago, resulting in a free cash flow margin that weakened from the prior quarter but improved from the same quarter last year.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the relationship between operating cash flow and revenue in the next quarter, as the current quarter's cash conversion weakened from the prior quarter despite higher revenue.