Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow also declined sequentially while rising year-over-year, leading to a free cash flow margin that narrowed from the prior quarter but widened from the same quarter last year.
- Revenue generated operating cash flow, and after capital expenditure, free cash flow was produced. The free cash flow margin reflects the proportion of revenue converted to free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Compared to the same quarter last year, all metrics improved, with the free cash flow margin strengthening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$433.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$452.0M
Cash generated by operations before capital spending.
CapEx
$19.0M
Capital spending and related asset purchases.
FCF margin
16.1%
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 | $3.0B | $421.0M | $15.0M | $406.0M | 13.8% |
| 2024-09-30 | $2.9B | $664.0M | $17.0M | $647.0M | 22.6% |
| 2024-12-31 | $2.8B | $582.0M | $48.0M | $534.0M | 19.2% |
| 2025-03-31 | $2.7B | $452.0M | $19.0M | $433.0M | 16.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Year-over-Year Margin Improvement
Free cash flow margin improved compared to the same quarter last year, as operating cash flow grew while capital expenditure remained relatively stable.
This improvement indicates stronger cash generation efficiency compared to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated operating cash flow, and after capital expenditure, free cash flow was produced. The free cash flow margin reflects the proportion of revenue converted to free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Compared to the same quarter last year, all metrics improved, with the free cash flow margin strengthening.
Monitor the trend in operating cash flow relative to revenue, as it is a key driver of free cash flow generation.