Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, DoorDash reported higher revenue, operating cash flow, and free cash flow compared to both the prior quarter and the year-ago quarter. The free cash flow margin improved sequentially but remained lower than the year-ago period, while the company's liquidity position was supported by a substantial balance of cash and marketable securities.
- Revenue increased, and operating cash flow rose, leading to higher free cash flow. The free cash flow margin was influenced by capital expenditure, which was higher than both comparison periods, resulting in a margin that improved from the prior quarter but was below the year-ago level.
- Compared to the immediately preceding quarter, all key metrics were higher and the margin improved. Compared to the same quarter one year earlier, revenue and free cash flow were higher, but the margin was lower due to a larger increase in capital expenditure.
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
$561.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$635.0M
Cash generated by operations before capital spending.
CapEx
$74.0M
Capital spending and related asset purchases.
FCF margin
18.5%
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 | $2.6B | $530.0M | $23.0M | $507.0M | 19.3% |
| 2024-09-30 | $2.7B | $531.0M | $32.0M | $499.0M | 18.4% |
| 2024-12-31 | $2.9B | $518.0M | $32.0M | $486.0M | 16.9% |
| 2025-03-31 | $3.0B | $635.0M | $74.0M | $561.0M | 18.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 290.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Higher Revenue
Revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base for cash generation. Operating cash flow also increased, contributing to improved free cash flow.
This supported a higher free cash flow relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow rose, leading to higher free cash flow. The free cash flow margin was influenced by capital expenditure, which was higher than both comparison periods, resulting in a margin that improved from the prior quarter but was below the year-ago level.
Compared to the immediately preceding quarter, all key metrics were higher and the margin improved. Compared to the same quarter one year earlier, revenue and free cash flow were higher, but the margin was lower due to a larger increase in capital expenditure.
Monitor the capital expenditure level, as it rose compared to both the prior quarter and the year-ago quarter.