Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a negative result one year earlier, supported by higher operating cash flow. However, free cash flow and margin weakened sharply from the prior quarter as revenue declined and capital spending remained elevated relative to operating cash generation.
- Revenue decreased from the prior quarter, while operating cash flow fell more sharply, resulting in a lower free cash flow margin. Capital expenditure was reduced from the prior quarter but remained a significant use of cash relative to operating cash flow.
- Compared to the prior quarter, free cash flow and margin weakened substantially due to lower revenue and a larger decline in operating cash flow. Versus the same quarter one year earlier, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$89.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$209.0M
Cash generated by operations before capital spending.
CapEx
$120.0M
Capital spending and related asset purchases.
FCF margin
2.4%
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 | $3.9B | $657.0M | $115.0M | $542.0M | 13.8% |
| 2024-09-30 | $3.9B | $628.0M | $125.0M | $503.0M | 12.9% |
| 2024-12-31 | $4.1B | $849.0M | $165.0M | $684.0M | 16.8% |
| 2025-03-31 | $3.6B | $209.0M | $120.0M | $89.0M | 2.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 17.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.3B | 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 Recovery vs. Year Ago
Operating cash flow was higher than the same quarter one year earlier, enabling free cash flow to turn positive after a negative result in the prior year period. This improvement occurred despite a modest increase in revenue.
The year-over-year improvement in operating cash flow was the strongest observable driver of the positive swing in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from the prior quarter, while operating cash flow fell more sharply, resulting in a lower free cash flow margin. Capital expenditure was reduced from the prior quarter but remained a significant use of cash relative to operating cash flow.
Compared to the prior quarter, free cash flow and margin weakened substantially due to lower revenue and a larger decline in operating cash flow. Versus the same quarter one year earlier, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital expenditure.
Monitor the trajectory of operating cash flow, which declined significantly from the prior quarter and is the primary driver of free cash flow variability.