Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained stable compared to the same quarter last year, supported by higher operating cash flow that offset a larger capital expenditure. The free cash flow margin declined from the prior quarter and was slightly lower than the year-ago level.
- Revenue was higher than the same quarter last year, and operating cash flow also increased, resulting in a higher operating cash flow margin. However, capital expenditure rose, so free cash flow increased only modestly, and the free cash flow margin narrowed slightly.
- Compared with the immediately preceding quarter, revenue and operating cash flow were both lower, while capital expenditure was higher, leading to a much lower free cash flow and a significantly lower margin. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was slightly higher, but the margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$459.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$513.0M
Cash generated by operations before capital spending.
CapEx
$54.0M
Capital spending and related asset purchases.
FCF margin
130.8%
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 | $360.0M | $297.0M | $42.0M | $255.0M | 70.8% |
| 2024-09-30 | $362.0M | -$58.0M | $42.0M | -$100.0M | -27.6% |
| 2024-12-31 | $410.0M | $1.1B | $27.0M | $1.1B | 265.4% |
| 2025-03-31 | $351.0M | $513.0M | $54.0M | $459.0M | 130.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.4% | 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 Growth
Operating cash flow was higher than the same quarter last year, providing the main support for free cash flow despite a larger capital outlay.
It kept free cash flow essentially flat year-over-year even as capital spending rose.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the same quarter last year, and operating cash flow also increased, resulting in a higher operating cash flow margin. However, capital expenditure rose, so free cash flow increased only modestly, and the free cash flow margin narrowed slightly.
Compared with the immediately preceding quarter, revenue and operating cash flow were both lower, while capital expenditure was higher, leading to a much lower free cash flow and a significantly lower margin. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was slightly higher, but the margin was slightly lower.
Capital expenditure increased from both the prior quarter and the same quarter last year, which reduced free cash flow conversion.