Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a strong improvement in operating cash flow. Revenue was lower than the prior quarter but higher than the same quarter last year.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in a healthy free cash flow and a positive margin. The conversion from revenue to cash was efficient this quarter.
- Compared to the prior quarter, free cash flow and margin improved notably despite lower revenue, as operating cash flow increased and capital spending decreased. Versus the same quarter last year, free cash flow shifted from negative to positive, with a substantial rise in operating cash flow and a moderate reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$975.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$186.0M
Capital spending and related asset purchases.
FCF margin
12.1%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $8.2B | $979.0M | $157.0M | $822.0M | 10.0% |
| 2024-09-30 | $8.9B | $1.1B | $159.0M | $968.0M | 10.9% |
| 2024-12-31 | $10.6B | $921.0M | $350.0M | $571.0M | 5.4% |
| 2025-03-31 | $8.0B | $1.2B | $186.0M | $975.0M | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 383.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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 Improvement
Operating cash flow strengthened significantly from both the prior quarter and the year-ago period, providing the primary boost to free cash flow.
This driver turned free cash flow positive and expanded the cash margin sharply.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in a healthy free cash flow and a positive margin. The conversion from revenue to cash was efficient this quarter.
Compared to the prior quarter, free cash flow and margin improved notably despite lower revenue, as operating cash flow increased and capital spending decreased. Versus the same quarter last year, free cash flow shifted from negative to positive, with a substantial rise in operating cash flow and a moderate reduction in capital expenditure.
Monitor whether operating cash flow can sustain its elevated level in coming quarters.