Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow decreased sequentially but was slightly higher year over year, while capital expenditure declined in both comparisons, leading to free cash flow that was lower than the prior quarter but higher than the year-ago quarter.
- The free cash flow margin weakened from the prior quarter but improved significantly compared to the same quarter last year, as operating cash flow as a share of revenue held relatively stable while capital spending was reduced year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow and free cash flow were all lower, resulting in a lower margin. Versus the year-ago quarter, revenue was lower but free cash flow was higher, supported by reduced capital expenditure and a modest increase in operating cash flow.
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
$427.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$555.1M
Cash generated by operations before capital spending.
CapEx
$127.6M
Capital spending and related asset purchases.
FCF margin
23.5%
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 | $2.0B | $808.8M | $179.2M | $629.6M | 31.9% |
| 2024-09-30 | $2.0B | $835.7M | $166.3M | $669.5M | 33.5% |
| 2024-12-31 | $1.9B | $883.4M | $184.0M | $699.4M | 36.2% |
| 2025-03-31 | $1.8B | $555.1M | $127.6M | $427.5M | 23.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-Over-Year Free Cash Flow Improvement
Despite lower revenue, free cash flow increased year over year as operating cash flow edged higher and capital expenditure was reduced. The free cash flow margin widened substantially compared to the same quarter last year. As noted in the filing, the company’s revenue depends on transaction volume, and many costs do not vary directly with volume, which can help sustain cash flows when revenue changes.
This improvement shows that cash generation efficiency strengthened relative to the prior year, even with a smaller revenue base.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin weakened from the prior quarter but improved significantly compared to the same quarter last year, as operating cash flow as a share of revenue held relatively stable while capital spending was reduced year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow and free cash flow were all lower, resulting in a lower margin. Versus the year-ago quarter, revenue was lower but free cash flow was higher, supported by reduced capital expenditure and a modest increase in operating cash flow.
Monitor the trend in operating cash flow generation given the sequential decline and its impact on free cash flow sustainability.