Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow margin improved compared to the previous quarter, with free cash flow substantially higher. Versus the same quarter last year, revenue was higher but free cash flow was stable while margin narrowed.
- Operating cash flow was materially higher than capital expenditure, resulting in a free cash flow margin that expanded noticeably versus the prior quarter. The conversion from revenue to free cash flow was lower when compared with the same quarter one year earlier.
- Compared to the prior quarter, operating cash flow and free cash flow were substantially higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow was slightly lower and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$29.3M
Capital spending and related asset purchases.
FCF margin
32.8%
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 | $2.8B | $1.2B | $12.4M | $1.1B | 41.0% |
| 2024-09-30 | $3.7B | $1.2B | $19.4M | $1.2B | 32.8% |
| 2024-12-31 | $3.1B | $161.4M | $11.9M | $149.5M | 4.9% |
| 2025-03-31 | $3.3B | $1.1B | $29.3M | $1.1B | 32.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 175.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sharply Higher Cash Conversion from Prior Quarter
Operating cash flow rose substantially from the prior quarter, driving a significant increase in free cash flow. This improvement in cash generation occurred alongside higher revenue.
The quarter's free cash flow margin was meaningfully higher than the preceding quarter, reflecting stronger cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was materially higher than capital expenditure, resulting in a free cash flow margin that expanded noticeably versus the prior quarter. The conversion from revenue to free cash flow was lower when compared with the same quarter one year earlier.
Compared to the prior quarter, operating cash flow and free cash flow were substantially higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow was slightly lower and free cash flow margin weakened.
Monitor the relationship between revenue growth and operating cash flow, as the current quarter showed a wider gap between the two compared with the prior year period.