Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the year-ago period. Operating cash flow, free cash flow, and free cash flow margin all improved year-over-year but weakened sequentially.
- Operating cash flow as a share of revenue was higher year-over-year but lower sequentially, resulting in a similar pattern for free cash flow and free cash flow margin. Capital expenditure remained relatively stable across all periods.
- Compared with the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all were lower. Compared with the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$426.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$568.0M
Cash generated by operations before capital spending.
CapEx
$142.0M
Capital spending and related asset purchases.
FCF margin
11.1%
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 | $3.8B | $588.0M | $143.0M | $445.0M | 11.7% |
| 2024-09-30 | $3.9B | $721.0M | $150.0M | $571.0M | 14.7% |
| 2024-12-31 | $4.0B | $885.0M | $164.0M | $721.0M | 18.2% |
| 2025-03-31 | $3.8B | $568.0M | $142.0M | $426.0M | 11.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 171.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.6B | 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
Free cash flow and free cash flow margin were higher compared to the same quarter last year, driven primarily by higher revenue and higher operating cash flow, with capital expenditure nearly flat.
This strengthens the year-over-year cash conversion trend despite the sequential weakening.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher year-over-year but lower sequentially, resulting in a similar pattern for free cash flow and free cash flow margin. Capital expenditure remained relatively stable across all periods.
Compared with the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all were lower. Compared with the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was slightly lower.
Monitor whether operating cash flow strength relative to revenue can be sustained given the sequential decline.