Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened significantly versus both the prior quarter and the same quarter last year, driven by lower operating cash flow. Revenue was slightly lower sequentially and stable year-over-year, while capital expenditure increased relative to the year-ago period.
- Cash conversion from revenue weakened, as operating cash flow declined more sharply than revenue, resulting in a lower free cash flow margin. Capital expenditure was higher than the year-ago quarter, further compressing free cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin narrowed. Versus the same quarter last year, operating cash flow and free cash flow also declined, while capital expenditure was higher.
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
$131.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$369.4M
Cash generated by operations before capital spending.
CapEx
$237.9M
Capital spending and related asset purchases.
FCF margin
3.6%
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 | $4.0B | $611.1M | $196.9M | $414.2M | 10.4% |
| 2024-09-30 | $4.0B | $786.7M | $236.4M | $550.3M | 13.8% |
| 2024-12-31 | $4.0B | $766.7M | $359.7M | $407.0M | 10.2% |
| 2025-03-31 | $3.7B | $369.4M | $237.9M | $131.5M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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.
Operating Cash Flow Decline
Operating cash flow decreased substantially from both the prior quarter and the year-ago quarter, despite relatively stable revenue. This decline was the strongest observable driver of the lower free cash flow.
The reduction in operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue weakened, as operating cash flow declined more sharply than revenue, resulting in a lower free cash flow margin. Capital expenditure was higher than the year-ago quarter, further compressing free cash flow.
Compared to the prior quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin narrowed. Versus the same quarter last year, operating cash flow and free cash flow also declined, while capital expenditure was higher.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow.