Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin was stable compared to the same quarter one year earlier, but weakened sharply from the immediately preceding quarter. Operating cash flow declined while capital expenditure was relatively unchanged, leading to a lower free cash flow.
- Revenue was slightly lower than the prior quarter and the year-ago quarter. Operating cash flow decreased from the prior quarter, while capital expenditure was slightly lower, resulting in free cash flow that was lower than the prior quarter but similar to the year-ago quarter. The free cash flow margin weakened from the prior quarter but was stable compared to the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, driven by a lower operating cash flow. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were stable, with operating cash flow and capital expenditure showing little change.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$496.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$592.0M
Cash generated by operations before capital spending.
CapEx
$96.0M
Capital spending and related asset purchases.
FCF margin
12.9%
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 | $4.0B | $687.0M | $116.0M | $571.0M | 14.2% |
| 2024-09-30 | $4.0B | $891.0M | $108.0M | $783.0M | 19.7% |
| 2024-12-31 | $3.9B | $1.1B | $118.0M | $996.0M | 25.3% |
| 2025-03-31 | $3.8B | $592.0M | $96.0M | $496.0M | 12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 70.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.4B | 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 Decline
Operating cash flow decreased from the prior quarter, while capital expenditure was slightly lower. This resulted in a lower free cash flow and a weakened free cash flow margin compared to the prior quarter.
The decline in operating cash flow was the strongest observable driver of the lower free cash flow and margin this quarter.
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 and the year-ago quarter. Operating cash flow decreased from the prior quarter, while capital expenditure was slightly lower, resulting in free cash flow that was lower than the prior quarter but similar to the year-ago quarter. The free cash flow margin weakened from the prior quarter but was stable compared to the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, driven by a lower operating cash flow. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were stable, with operating cash flow and capital expenditure showing little change.
Monitor the trend in operating cash flow, as it declined from the prior quarter and is the primary driver of free cash flow.