Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter reported a positive free cash flow, a notable improvement from the prior quarter's negative figure, although it was lower than the same period last year. Operating cash flow turned positive while capital expenditure increased.
- Revenue was stable compared to the prior quarter and the year-ago quarter. Operating cash flow turned positive from negative in the prior quarter, but was lower year over year. Capital expenditure rose from the prior quarter and was similar to the year-ago level. Free cash flow improved to positive from negative sequentially, but weakened relative to the prior year. The free cash flow margin followed a similar pattern, improving sequentially but declining year over year.
- Compared to the prior quarter, free cash flow and margin improved significantly, driven by the swing in operating cash flow. Compared to the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined despite a slight increase in revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$759.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$98.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$250.0M
Cash generated by operations before capital spending.
CapEx
$152.0M
Capital spending and related asset purchases.
FCF margin
2.1%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $4.8B | $650.0M | $80.0M | $570.0M | 11.8% |
| 2024-03-31 | $4.7B | $419.0M | $145.0M | $274.0M | 5.9% |
| 2024-06-30 | $4.8B | -$119.0M | $64.0M | -$183.0M | -3.8% |
| 2025-03-31 | $4.8B | $250.0M | $152.0M | $98.0M | 2.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 17.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.3B | 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 Recovery
Operating cash flow moved from a negative value in the prior quarter to a positive value, and free cash flow followed the same directional change. This was the most prominent shift among the reported metrics.
The recovery in operating cash flow was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and the year-ago quarter. Operating cash flow turned positive from negative in the prior quarter, but was lower year over year. Capital expenditure rose from the prior quarter and was similar to the year-ago level. Free cash flow improved to positive from negative sequentially, but weakened relative to the prior year. The free cash flow margin followed a similar pattern, improving sequentially but declining year over year.
Compared to the prior quarter, free cash flow and margin improved significantly, driven by the swing in operating cash flow. Compared to the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined despite a slight increase in revenue.
Capital expenditure increased from the prior quarter, warranting observation for its effect on future free cash flow generation.