Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated substantial free cash flow with a high margin, driven by operating cash flow that was close to revenue. Capital expenditure remained modest.
- Revenue was converted into operating cash flow at a high rate, and after deducting capital expenditure, free cash flow remained nearly as large as operating cash flow, resulting in a free cash flow margin that was significantly above the prior quarter and similar to the prior year.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were much higher, leading to a sharp improvement in free cash flow margin. Compared to the same quarter one year earlier, revenue was slightly higher, operating cash flow and free cash flow were also slightly higher, while free cash flow margin was marginally lower, indicating a stable performance.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$196.0M
Capital spending and related asset purchases.
FCF margin
92.2%
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 | $3.6B | $1.5B | $194.0M | $1.3B | 36.7% |
| 2024-09-30 | $4.1B | -$1.5B | $194.0M | -$1.7B | -41.6% |
| 2024-12-31 | $3.2B | $198.0M | $191.0M | $7.0M | 0.2% |
| 2025-03-31 | $3.0B | $3.0B | $196.0M | $2.8B | 92.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1378.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$496.0M | 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
Operating cash flow was the primary driver of free cash flow in the quarter, as it was at a level comparable to revenue while capital expenditure was relatively low.
The strong operating cash flow enabled the company to achieve a high free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was converted into operating cash flow at a high rate, and after deducting capital expenditure, free cash flow remained nearly as large as operating cash flow, resulting in a free cash flow margin that was significantly above the prior quarter and similar to the prior year.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were much higher, leading to a sharp improvement in free cash flow margin. Compared to the same quarter one year earlier, revenue was slightly higher, operating cash flow and free cash flow were also slightly higher, while free cash flow margin was marginally lower, indicating a stable performance.
The company's cash and investment position and the deployment of proceeds from the senior notes issued in February 2025.