Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened compared to both the prior quarter and the same quarter last year, driven by a lower operating cash flow despite a modest increase in revenue year over year. The decline in operating cash flow was the primary factor behind the reduced free cash flow generation.
- Revenue was slightly lower than the prior quarter but higher than the year-ago quarter. Operating cash flow decreased relative to both prior periods, while capital expenditure was higher than the prior quarter and lower than the year-ago quarter. The combination resulted in free cash flow and free cash flow margin that were lower than both comparison periods.
- Compared to the prior quarter, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower. Compared to the same quarter a year ago, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$947.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$985.0M
Cash generated by operations before capital spending.
CapEx
$38.0M
Capital spending and related asset purchases.
FCF margin
258.7%
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 | $364.0M | $1.3B | $61.0M | $1.2B | 329.4% |
| 2024-09-30 | $369.0M | $1.7B | $60.0M | $1.6B | 438.5% |
| 2024-12-31 | $373.0M | $1.9B | $26.0M | $1.8B | 495.4% |
| 2025-03-31 | $366.0M | $985.0M | $38.0M | $947.0M | 258.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.4% | 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.
Weaker Operating Cash Flow
Operating cash flow declined compared to both the prior quarter and the year-ago quarter, despite revenue being higher than the prior year. This reduction in operating cash flow was the most significant observable factor driving the lower free cash flow and margin.
The weaker operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than the year-ago quarter. Operating cash flow decreased relative to both prior periods, while capital expenditure was higher than the prior quarter and lower than the year-ago quarter. The combination resulted in free cash flow and free cash flow margin that were lower than both comparison periods.
Compared to the prior quarter, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower. Compared to the same quarter a year ago, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow and margin were lower.
Monitor the trajectory of operating cash flow relative to revenue, as it was the key factor in the quarter's free cash flow decline.