Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion turned positive this quarter, with free cash flow margin moving from negative to positive. The improvement was driven by higher operating cash flow and lower capital expenditure compared to both the prior quarter and the same quarter one year earlier.
- Revenue was higher than the prior quarter but lower than the same quarter one year earlier. Operating cash flow was significantly higher than both comparisons, while capital expenditure was lower than both. Free cash flow turned positive, and the margin improved from negative to positive.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by a large increase in operating cash flow and a decrease in capital expenditure. Compared to the same quarter one year earlier, a similar improvement was observed, with operating cash flow sharply higher and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$526.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$420.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$483.0M
Cash generated by operations before capital spending.
CapEx
$63.0M
Capital spending and related asset purchases.
FCF margin
8.0%
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 | $660.0M | $108.0M | $552.0M | 9.3% |
| 2024-09-30 | $6.0B | -$269.0M | $92.0M | -$361.0M | -6.0% |
| 2024-12-31 | $5.1B | $132.0M | $217.0M | -$85.0M | -1.7% |
| 2025-03-31 | $5.2B | $483.0M | $63.0M | $420.0M | 8.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.5B | 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 Improvement
Operating cash flow was materially higher than both the prior quarter and the same quarter one year earlier, contributing to the swing to positive free cash flow.
The strong increase in operating cash flow was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than the same quarter one year earlier. Operating cash flow was significantly higher than both comparisons, while capital expenditure was lower than both. Free cash flow turned positive, and the margin improved from negative to positive.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by a large increase in operating cash flow and a decrease in capital expenditure. Compared to the same quarter one year earlier, a similar improvement was observed, with operating cash flow sharply higher and capital expenditure lower.
Monitor capital expenditure levels, as they were notably lower than both prior periods; any increase could pressure free cash flow if operating cash flow does not rise proportionally.