Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow declined sharply from both the prior quarter and the year-ago period, causing free cash flow to fall despite stable revenue and reduced capital expenditure. The free cash flow margin weakened versus the prior quarter but was nearly unchanged from the same quarter one year earlier.
- With revenue unchanged quarter over quarter, the drop in operating cash flow drove free cash flow lower, widening the gap between revenue and cash generation. Capital expenditure contracted from both comparison periods, partially offsetting the cash flow decline but not enough to stabilize the margin.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were notably lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, operating cash flow was also lower, while free cash flow was stable and the margin showed little change.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$808.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$116.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$223.9M
Cash generated by operations before capital spending.
CapEx
$107.2M
Capital spending and related asset purchases.
FCF margin
8.1%
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 | $1.4B | $267.5M | $136.7M | $130.8M | 9.1% |
| 2024-09-30 | $1.4B | $479.5M | $124.0M | $355.5M | 24.7% |
| 2024-12-31 | $1.4B | $324.8M | $118.9M | $205.9M | 14.5% |
| 2025-03-31 | $1.4B | $223.9M | $107.2M | $116.7M | 8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | 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 Weakness
Operating cash flow fell substantially from both the prior quarter and the year-ago quarter, despite revenue remaining at the same level. This contraction was the primary observable driver of the lower free cash flow in the current quarter.
If operating cash flow continues at this lower level, free cash flow may remain under pressure even with stable revenue and controlled capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged quarter over quarter, the drop in operating cash flow drove free cash flow lower, widening the gap between revenue and cash generation. Capital expenditure contracted from both comparison periods, partially offsetting the cash flow decline but not enough to stabilize the margin.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were notably lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, operating cash flow was also lower, while free cash flow was stable and the margin showed little change.
Monitor whether operating cash flow recovers toward historical levels, as the current quarter’s decline was the main factor behind the lower free cash flow.