Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, supported by higher operating cash flow. Free cash flow margin improved versus both the prior quarter and the year-ago period.
- Revenue increased sequentially while operating cash flow grew, leading to a free cash flow margin that moved from negative to positive. Capital expenditure rose slightly, but free cash flow swung to a positive figure as operating cash flow more than offset capex.
- Compared with the prior quarter, revenue and operating cash flow were both higher, turning free cash flow from negative to positive. Versus the same quarter a year ago, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$410.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$533.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$563.0M
Capital spending and related asset purchases.
FCF margin
24.3%
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 | $505.0M | $209.0M | $302.0M | -$93.0M | -18.4% |
| 2024-09-30 | $648.0M | $422.0M | $298.0M | $124.0M | 19.1% |
| 2024-12-31 | $2.0B | $382.0M | $536.0M | -$154.0M | -7.7% |
| 2025-03-31 | $2.2B | $1.1B | $563.0M | $533.0M | 24.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -214.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 25.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 strength
The increase in operating cash flow was the most notable factor behind the swing to positive free cash flow. Revenue growth accompanied this improvement, but the filing does not specify underlying causes.
Stronger operating cash flow enabled the company to generate positive free cash flow after covering capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased sequentially while operating cash flow grew, leading to a free cash flow margin that moved from negative to positive. Capital expenditure rose slightly, but free cash flow swung to a positive figure as operating cash flow more than offset capex.
Compared with the prior quarter, revenue and operating cash flow were both higher, turning free cash flow from negative to positive. Versus the same quarter a year ago, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved.
Monitor capital expenditure relative to operating cash flow to assess whether free cash flow can sustain its positive level.