Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from both the prior quarter and the year-ago quarter, driven by robust operating cash flow and a notable reduction in capital expenditure. The free cash flow margin reached a high level, reflecting efficient cash conversion during the period.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased markedly from the prior quarter and was slightly higher than the year-ago period. Capital expenditure declined substantially from both comparison periods, resulting in free cash flow rising and the free cash flow margin improving significantly.
- Compared with the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher, and capital expenditure was substantially lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$796.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$863.3M
Cash generated by operations before capital spending.
CapEx
$66.5M
Capital spending and related asset purchases.
FCF margin
51.8%
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 | $1.4B | $342.0M | $23.1M | $318.9M | 22.2% |
| 2024-09-30 | $1.5B | $608.1M | $36.3M | $571.8M | 37.9% |
| 2024-12-31 | $1.7B | $477.6M | $97.6M | $380.0M | 22.9% |
| 2025-03-31 | $1.5B | $863.3M | $66.5M | $796.8M | 51.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 183.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.6B | 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 robust, rising significantly from the prior quarter and modestly from a year ago, despite lower sequential revenue. This formed the primary support for free cash flow improvement.
Higher operating cash flow, combined with lower capital expenditure, drove free cash flow and margin to notably higher levels than both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased markedly from the prior quarter and was slightly higher than the year-ago period. Capital expenditure declined substantially from both comparison periods, resulting in free cash flow rising and the free cash flow margin improving significantly.
Compared with the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher, and capital expenditure was substantially lower.
Monitor the trend in capital expenditure, which dropped sharply this quarter, as its sustainability will influence future free cash flow generation.