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 a year ago. Free cash flow margin improved significantly compared to the same quarter last year, though it weakened slightly from the preceding quarter.
- Operating cash flow was lower than the prior quarter but substantially higher than a year ago. Capital expenditure decreased from both comparison periods, contributing to free cash flow that was slightly lower than the prior quarter but much higher than the year-ago quarter. The free cash flow margin was stable versus the prior quarter and greatly improved from a year earlier.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure also decreased, resulting in a slightly lower free cash flow and a marginally weaker margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower, leading to a much stronger free cash flow margin.
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
$465.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$581.6M
Cash generated by operations before capital spending.
CapEx
$116.6M
Capital spending and related asset purchases.
FCF margin
20.6%
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 | $2.0B | $620.5M | $309.4M | $311.1M | 15.5% |
| 2024-09-30 | $2.0B | $706.5M | $247.9M | $458.6M | 22.5% |
| 2024-12-31 | $2.4B | $822.6M | $312.0M | $510.6M | 21.2% |
| 2025-03-31 | $2.3B | $581.6M | $116.6M | $465.0M | 20.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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 Strength
Operating cash flow was substantially higher than the same quarter last year, despite being lower than the prior quarter. This improvement, combined with reduced capital expenditure, drove a much higher free cash flow margin year over year.
The year-over-year increase in operating cash flow was the strongest observable driver of free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but substantially higher than a year ago. Capital expenditure decreased from both comparison periods, contributing to free cash flow that was slightly lower than the prior quarter but much higher than the year-ago quarter. The free cash flow margin was stable versus the prior quarter and greatly improved from a year earlier.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure also decreased, resulting in a slightly lower free cash flow and a marginally weaker margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower, leading to a much stronger free cash flow margin.
Monitor the trend in capital expenditure, which decreased from both the prior quarter and the year-ago quarter, as it directly supports free cash flow generation.