Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow turned positive from negative in both comparison periods, supported by a lower capital expenditure relative to operating cash flow.
- Operating cash flow as a proportion of revenue improved compared to both the prior quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, resulting in a positive free cash flow margin versus negative margins in both comparison periods.
- Compared to the prior quarter, revenue was lower and operating cash flow was lower, but capital expenditure decreased more sharply, turning free cash flow from negative to positive. Compared to the same quarter last year, revenue and operating cash flow were higher, capital expenditure was slightly higher, and free cash flow improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$351.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$59.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$809.0M
Cash generated by operations before capital spending.
CapEx
$750.0M
Capital spending and related asset purchases.
FCF margin
2.7%
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 | $2.2B | $912.0M | $648.0M | $264.0M | 12.2% |
| 2024-09-30 | $2.2B | $758.0M | $724.0M | $34.0M | 1.5% |
| 2024-12-31 | $2.3B | $981.0M | $987.0M | -$6.0M | -0.3% |
| 2025-03-31 | $2.2B | $809.0M | $750.0M | $59.0M | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 17.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 33.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure reduction
Capital expenditure was lower than the prior quarter, which was the strongest observable factor in turning free cash flow positive. Operating cash flow, while lower than the prior quarter, was higher than the year-ago quarter.
The lower capital expenditure relative to operating cash flow directly shifted free cash flow from negative to positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved compared to both the prior quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, resulting in a positive free cash flow margin versus negative margins in both comparison periods.
Compared to the prior quarter, revenue was lower and operating cash flow was lower, but capital expenditure decreased more sharply, turning free cash flow from negative to positive. Compared to the same quarter last year, revenue and operating cash flow were higher, capital expenditure was slightly higher, and free cash flow improved from negative to positive.
Monitor whether capital expenditure remains at a level that sustains positive free cash flow given the current operating cash flow.