Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased year-over-year as capital expenditure outpaced revenue and operating cash flow growth. Compared to the prior quarter, operating cash flow increased, but free cash flow data was not available for comparison.
- Revenue rose while operating cash flow improved, but capital expenditure increased substantially, resulting in a lower free cash flow margin than the same quarter last year.
- Compared to the prior quarter, revenue and operating cash flow were higher. Versus the year-ago quarter, revenue and operating cash flow were higher, but capital expenditure increased, causing free cash flow and free cash flow margin to decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$112.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$888.0M
Capital spending and related asset purchases.
FCF margin
4.7%
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 | $1.6B | $707.0M | $681.0M | $26.0M | 1.6% |
| 2024-09-30 | $1.7B | $304.0M | $806.0M | -$502.0M | -29.3% |
| 2024-12-31 | $1.9B | $403.0M | n/a | n/a | n/a |
| 2025-03-31 | $2.4B | $1.0B | $888.0M | $112.0M | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 36.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 37.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Growth
Capital expenditure increased sharply compared to the prior year, outpacing the rise in operating cash flow and revenue. This drove the decline in free cash flow and margin.
The higher capital outlay consumed a larger portion of operating cash flow, reducing free cash flow available.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow improved, but capital expenditure increased substantially, resulting in a lower free cash flow margin than the same quarter last year.
Compared to the prior quarter, revenue and operating cash flow were higher. Versus the year-ago quarter, revenue and operating cash flow were higher, but capital expenditure increased, causing free cash flow and free cash flow margin to decline.
Monitor capital expenditure levels as they significantly impacted free cash flow conversion this quarter.