Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter generated strong free cash flow with a healthy margin. The improvement was driven by a significant increase in operating cash flow compared to the prior quarter.
- Revenue declined from the prior quarter, but operating cash flow turned sharply positive, leading to a large increase in free cash flow. Capital expenditure remained stable. Compared to the same quarter last year, both revenue and cash generation improved, with the free cash flow margin slightly higher than a year ago.
- Free cash flow improved markedly from the prior quarter when it was negative, and was also higher than the same quarter last year. Operating cash flow was the primary driver of this improvement.
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
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$74.0M
Capital spending and related asset purchases.
FCF margin
44.4%
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 | $3.1B | $899.0M | $112.0M | $787.0M | 25.5% |
| 2024-09-30 | $3.6B | $158.0M | $64.0M | $94.0M | 2.6% |
| 2024-12-31 | $5.1B | -$362.0M | $74.0M | -$436.0M | -8.6% |
| 2025-03-31 | $4.4B | $2.0B | $74.0M | $1.9B | 44.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 548.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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.
Operating Cash Flow Rebound
Operating cash flow turned strongly positive this quarter after being negative in the prior quarter, driving the entire improvement in free cash flow. Capital expenditure remained largely unchanged.
Sustained strong operating cash flow is essential to maintain the high free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, but operating cash flow turned sharply positive, leading to a large increase in free cash flow. Capital expenditure remained stable. Compared to the same quarter last year, both revenue and cash generation improved, with the free cash flow margin slightly higher than a year ago.
Free cash flow improved markedly from the prior quarter when it was negative, and was also higher than the same quarter last year. Operating cash flow was the primary driver of this improvement.
Monitor the sustainability of operating cash flow levels given the quarter's significant swing from negative to positive.