Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter last year. The margin strengthened from the prior quarter yet declined from the year-ago period.
- Revenue and operating cash flow both increased from the prior quarter, while capital expenditure decreased, leading to higher free cash flow and margin. Compared to a year ago, revenue was higher but operating cash flow was lower, and capital expenditure was higher, resulting in lower free cash flow and margin.
- Sequentially, free cash flow and margin improved as operating cash flow rose and capital expenditure fell. Year over year, free cash flow and margin weakened despite higher revenue, due to lower operating cash flow and higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$412.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$557.1M
Cash generated by operations before capital spending.
CapEx
$144.8M
Capital spending and related asset purchases.
FCF margin
14.3%
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 | $3.0B | $562.6M | $140.5M | $422.1M | 14.2% |
| 2024-09-30 | $2.8B | $446.5M | $147.5M | $299.0M | 10.7% |
| 2024-12-31 | $2.8B | $526.8M | $172.9M | $353.9M | 12.4% |
| 2025-03-31 | $2.9B | $557.1M | $144.8M | $412.3M | 14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 106.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | 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.
Sequential Free Cash Flow Improvement
Free cash flow and margin increased from the prior quarter, driven by higher operating cash flow and lower capital expenditure. This represents a reversal from the prior quarter's weaker performance.
The sequential improvement in free cash flow and margin signals a stronger cash conversion efficiency in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased from the prior quarter, while capital expenditure decreased, leading to higher free cash flow and margin. Compared to a year ago, revenue was higher but operating cash flow was lower, and capital expenditure was higher, resulting in lower free cash flow and margin.
Sequentially, free cash flow and margin improved as operating cash flow rose and capital expenditure fell. Year over year, free cash flow and margin weakened despite higher revenue, due to lower operating cash flow and higher capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending this quarter contributed to the year-over-year decline in free cash flow.