Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from both the prior quarter and the year-ago period, driven by lower operating cash flow. The free cash flow margin weakened sequentially and compared to the same period last year.
- Revenue was stable versus the prior quarter but slightly lower than a year ago. Operating cash flow decreased significantly from the prior quarter and was also lower year over year, while capital expenditure was lower in both comparisons, resulting in a free cash flow margin that weakened.
- Compared to the prior quarter, free cash flow and margin were lower, with operating cash flow substantially lower despite similar revenue. Versus the year-ago quarter, free cash flow and margin were also lower, as operating cash flow declined while revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$476.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$600.0M
Cash generated by operations before capital spending.
CapEx
$124.0M
Capital spending and related asset purchases.
FCF margin
9.7%
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 | $5.1B | $990.0M | $117.0M | $873.0M | 17.3% |
| 2024-09-30 | $5.0B | $1.2B | $134.0M | $1.0B | 20.5% |
| 2024-12-31 | $4.9B | $1.3B | $184.0M | $1.1B | 21.9% |
| 2025-03-31 | $4.9B | $600.0M | $124.0M | $476.0M | 9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.2B | 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 sequentially and year over year, directly reducing free cash flow. The filing attributes this primarily to changes in working capital.
Weaker cash conversion from operations constrained free cash flow generation in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter but slightly lower than a year ago. Operating cash flow decreased significantly from the prior quarter and was also lower year over year, while capital expenditure was lower in both comparisons, resulting in a free cash flow margin that weakened.
Compared to the prior quarter, free cash flow and margin were lower, with operating cash flow substantially lower despite similar revenue. Versus the year-ago quarter, free cash flow and margin were also lower, as operating cash flow declined while revenue was slightly lower.
Monitor changes in working capital, which the filing cites as the primary reason for the operating cash flow decline.