Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter, while operating cash flow and free cash flow were lower. Cash conversion weakened versus both the preceding quarter and the same quarter one year earlier.
- Revenue was unchanged from the prior quarter, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was slightly lower, yet the decline in operating cash flow was the primary factor in the reduced cash conversion.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by weaker operating cash flow. Versus the same quarter one year earlier, all cash flow metrics were lower, with operating cash flow and free cash flow showing the most significant decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$260.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$287.2M
Cash generated by operations before capital spending.
CapEx
$26.9M
Capital spending and related asset purchases.
FCF margin
5.0%
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 | $5.4B | $149.9M | $30.9M | $119.0M | 2.2% |
| 2024-09-30 | $5.5B | $342.1M | $33.6M | $308.5M | 5.6% |
| 2024-12-31 | $5.2B | $345.3M | $28.6M | $316.7M | 6.1% |
| 2025-03-31 | $5.2B | $287.2M | $26.9M | $260.3M | 5.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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 compared to both the prior quarter and the same quarter last year, despite revenue being stable sequentially and higher year-over-year. This decline was the strongest observable driver of the reduction in free cash flow.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was slightly lower, yet the decline in operating cash flow was the primary factor in the reduced cash conversion.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by weaker operating cash flow. Versus the same quarter one year earlier, all cash flow metrics were lower, with operating cash flow and free cash flow showing the most significant decline.
Monitor the trajectory of operating cash flow, as it was the primary driver of the decline in free cash flow this quarter.