Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased compared to both the prior quarter and the same quarter last year. Free cash flow weakened significantly versus both periods, driven by lower operating cash flow.
- Operating cash flow was lower than revenue, resulting in a free cash flow margin that declined from the prior quarter and the year-ago quarter. Capital expenditure was reduced, but the drop in operating cash flow more than offset that reduction.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow was lower, with the margin also weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$948.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$162.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$284.0M
Cash generated by operations before capital spending.
CapEx
$122.0M
Capital spending and related asset purchases.
FCF margin
4.6%
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 | $3.9B | $889.0M | $217.0M | $672.0M | 17.4% |
| 2024-09-30 | $3.4B | -$670.0M | $141.0M | -$811.0M | -24.1% |
| 2024-12-31 | $4.0B | $1.1B | $132.0M | $925.0M | 23.1% |
| 2025-03-31 | $3.5B | $284.0M | $122.0M | $162.0M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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 fell sharply from both the prior quarter and the year-ago quarter, driving the reduction in free cash flow despite lower capital expenditure.
The lower operating cash flow was the strongest observable driver of the weakened free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, resulting in a free cash flow margin that declined from the prior quarter and the year-ago quarter. Capital expenditure was reduced, but the drop in operating cash flow more than offset that reduction.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow was lower, with the margin also weakened.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow.