Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply from the prior quarter and was lower than the same quarter last year. The decline was driven by a significant drop in operating cash flow despite stable revenue.
- Revenue was unchanged from the prior quarter, but operating cash flow fell substantially, leading to a much lower free cash flow and free cash flow margin. Capital expenditure was slightly lower than the prior quarter and slightly higher than a year ago.
- Compared to the prior quarter, free cash flow and free cash flow margin were much lower, while revenue was stable. Versus the same quarter last year, free cash flow and margin were also lower, with revenue slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$123.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$327.0M
Cash generated by operations before capital spending.
CapEx
$204.0M
Capital spending and related asset purchases.
FCF margin
3.0%
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 | $4.2B | $1.0B | $158.0M | $863.0M | 20.4% |
| 2024-09-30 | $4.1B | $958.0M | $160.0M | $798.0M | 19.3% |
| 2024-12-31 | $4.1B | $817.0M | $209.0M | $608.0M | 14.8% |
| 2025-03-31 | $4.1B | $327.0M | $204.0M | $123.0M | 3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 21.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | 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 Decline
Operating cash flow was substantially lower than both the prior quarter and the same quarter last year, while revenue remained relatively stable. This was the strongest observable driver of the weakened free cash flow.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow fell substantially, leading to a much lower free cash flow and free cash flow margin. Capital expenditure was slightly lower than the prior quarter and slightly higher than a year ago.
Compared to the prior quarter, free cash flow and free cash flow margin were much lower, while revenue was stable. Versus the same quarter last year, free cash flow and margin were also lower, with revenue slightly lower.
Monitor operating cash flow, which declined sharply from both the prior quarter and the year-ago quarter, as it is the primary driver of free cash flow weakness.