Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow narrowed sharply versus the prior quarter and also declined from the same quarter last year, driven by significantly lower operating cash flow. The free cash flow margin fell to its lowest level among the comparable periods.
- Revenue rose sequentially and year-over-year, yet operating cash flow dropped markedly in both comparisons, leading to a sharp contraction in free cash flow and free cash flow margin. Capital expenditure was lower than both prior periods, but not enough to offset the decline in cash generation from operations.
- Compared with the immediately preceding quarter, revenue improved while operating cash flow and free cash flow both weakened substantially, with free cash flow margin declining from a much higher level. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and free cash flow margin narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$91.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$238.0M
Cash generated by operations before capital spending.
CapEx
$147.0M
Capital spending and related asset purchases.
FCF margin
1.4%
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 | $6.3B | $946.0M | $187.0M | $759.0M | 12.0% |
| 2024-09-30 | $6.3B | $1.3B | $183.0M | $1.1B | 17.7% |
| 2024-12-31 | $6.2B | $1.6B | $255.0M | $1.3B | 21.5% |
| 2025-03-31 | $6.4B | $238.0M | $147.0M | $91.0M | 1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 9.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sharp Drop in Operating Cash Flow
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, causing free cash flow to decline despite revenue growth and lower capital expenditure.
This driver compressed free cash flow margin more than any other metric in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose sequentially and year-over-year, yet operating cash flow dropped markedly in both comparisons, leading to a sharp contraction in free cash flow and free cash flow margin. Capital expenditure was lower than both prior periods, but not enough to offset the decline in cash generation from operations.
Compared with the immediately preceding quarter, revenue improved while operating cash flow and free cash flow both weakened substantially, with free cash flow margin declining from a much higher level. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and free cash flow margin narrowed.
Monitor whether operating cash flow recovers toward historical levels, as it was the primary factor behind the current quarter's weakened cash conversion.