Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than both the prior quarter and the same quarter last year. Free cash flow improved markedly from the prior quarter but was slightly below the year-ago level.
- Operating cash flow increased relative to the previous quarter while capital expenditure decreased, resulting in a substantially higher free cash flow and an improved free cash flow margin. Compared to the same quarter last year, operating cash flow was slightly lower, and capital expenditure was marginally higher, leading to a modestly lower free cash flow and margin.
- Relative to the prior quarter, all cash flow metrics strengthened: operating cash flow rose, capital spending fell, and free cash flow and its margin rose sharply. Versus the year-ago quarter, revenue was higher, but operating cash flow was slightly lower, capital expenditure was slightly higher, and free cash flow and its margin were slightly lower, showing a mixed performance.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$521.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$646.0M
Cash generated by operations before capital spending.
CapEx
$125.0M
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 | $4.3B | $411.0M | $76.0M | $335.0M | 7.8% |
| 2024-09-30 | $4.4B | $611.0M | $88.0M | $523.0M | 11.9% |
| 2024-12-31 | $4.2B | $428.0M | $258.0M | $170.0M | 4.0% |
| 2025-03-31 | $4.3B | $646.0M | $125.0M | $521.0M | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | 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 Recovery
Operating cash flow rose substantially compared to the previous quarter, as reflected in the financial statements. This increase was the primary factor behind the improved free cash flow and margin.
The improvement in operating cash flow supported a significantly higher free cash flow and margin versus the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to the previous quarter while capital expenditure decreased, resulting in a substantially higher free cash flow and an improved free cash flow margin. Compared to the same quarter last year, operating cash flow was slightly lower, and capital expenditure was marginally higher, leading to a modestly lower free cash flow and margin.
Relative to the prior quarter, all cash flow metrics strengthened: operating cash flow rose, capital spending fell, and free cash flow and its margin rose sharply. Versus the year-ago quarter, revenue was higher, but operating cash flow was slightly lower, capital expenditure was slightly higher, and free cash flow and its margin were slightly lower, showing a mixed performance.
Monitor the decline in cash and cash equivalents from the end of the prior quarter to the end of the current quarter, as noted in the liquidity discussion.