Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow improved sequentially, and capital expenditure dropped sharply, boosting free cash flow and margin.
- Operating cash flow relative to revenue was substantial, and after capital expenditure, free cash flow remained high, resulting in an elevated free cash flow margin. The company noted that it has experienced no loss of access to its cash equivalents and expects to fund short-term liquidity requirements from operating cash flows.
- Compared to the prior quarter, operating cash flow improved and capital expenditure was lower, leading to higher free cash flow and an improved margin. Relative to the same quarter last year, operating cash flow was slightly lower, capital expenditure was higher, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$364.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$481.4M
Cash generated by operations before capital spending.
CapEx
$117.1M
Capital spending and related asset purchases.
FCF margin
1178.9%
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 | $29.9M | $545.2M | $27.6M | $517.6M | 1733.5% |
| 2024-09-30 | $29.9M | $468.4M | $158.2M | $310.1M | 1037.8% |
| 2024-12-31 | $31.0M | $408.3M | $258.1M | $150.2M | 485.0% |
| 2025-03-31 | $30.9M | $481.4M | $117.1M | $364.3M | 1178.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 378.8% | 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.
Capital Expenditure Reduction
Capital expenditure decreased sharply from the prior quarter, allowing a larger portion of operating cash flow to convert into free cash flow.
This change was the primary driver of the sequential improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow relative to revenue was substantial, and after capital expenditure, free cash flow remained high, resulting in an elevated free cash flow margin. The company noted that it has experienced no loss of access to its cash equivalents and expects to fund short-term liquidity requirements from operating cash flows.
Compared to the prior quarter, operating cash flow improved and capital expenditure was lower, leading to higher free cash flow and an improved margin. Relative to the same quarter last year, operating cash flow was slightly lower, capital expenditure was higher, and free cash flow and margin were lower.
Monitor the level of capital expenditure, as it has varied significantly between periods.