Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to the same quarter last year, driven by higher operating cash flow. However, free cash flow weakened substantially from the prior quarter due to lower operating cash flow.
- Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, leading to a free cash flow margin that weakened sequentially but improved year over year.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and capital expenditure was slightly lower. Compared to the same quarter last year, operating cash flow and free cash flow were higher, while capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$323.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$400.0M
Cash generated by operations before capital spending.
CapEx
$77.0M
Capital spending and related asset purchases.
FCF margin
6.3%
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 | $4.8B | $262.0M | $79.0M | $183.0M | 3.8% |
| 2024-09-30 | $5.0B | $847.0M | $56.0M | $791.0M | 15.7% |
| 2024-12-31 | $5.1B | $920.0M | $83.0M | $837.0M | 16.5% |
| 2025-03-31 | $5.1B | $400.0M | $77.0M | $323.0M | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 48.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Year-over-year operating cash flow improvement
Operating cash flow was higher than the same quarter last year, which the filing attributes partly to a prior-year payment related to a dispute. This was the strongest observable driver of the year-over-year free cash flow increase.
The higher operating cash flow directly lifted free cash flow and margin compared to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, leading to a free cash flow margin that weakened sequentially but improved year over year.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and capital expenditure was slightly lower. Compared to the same quarter last year, operating cash flow and free cash flow were higher, while capital expenditure was slightly lower.
Monitor the sustainability of operating cash flow levels given the sequential decline from the prior quarter.