Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter and the year-ago quarter. Free cash flow margin improved, while free cash flow was slightly lower.
- Operating cash flow as a percentage of revenue improved year over year, as operating cash flow increased despite lower revenue. Capital expenditure rose relative to the year-ago period, partially offsetting the cash improvement.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure decreased, leading to a free cash flow margin similar to that quarter. Compared to the year-ago quarter, revenue declined but operating cash flow improved, resulting in a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$536.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$719.0M
Capital spending and related asset purchases.
FCF margin
15.7%
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 | $3.7B | $1.1B | $549.0M | $558.0M | 15.1% |
| 2024-09-30 | $3.6B | $1.7B | $625.0M | $1.1B | 29.3% |
| 2024-12-31 | $3.5B | $1.4B | $838.0M | $550.0M | 15.5% |
| 2025-03-31 | $3.4B | $1.3B | $719.0M | $536.0M | 15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.0% | 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.
Operating Cash Flow Improvement
Operating cash flow increased year over year, supported by favorable tax payment timing as noted in the filing.
This improvement contributed to a higher free cash flow margin compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved year over year, as operating cash flow increased despite lower revenue. Capital expenditure rose relative to the year-ago period, partially offsetting the cash improvement.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure decreased, leading to a free cash flow margin similar to that quarter. Compared to the year-ago quarter, revenue declined but operating cash flow improved, resulting in a higher free cash flow margin.
The increase in capital expenditure, partly due to rebuilding efforts following Hurricane Helene as disclosed in the filing, should be monitored for its impact on future free cash flow.