Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the year-ago quarter, driven by higher operating cash flow and lower capital expenditure. Compared with the prior quarter, free cash flow decreased as operating cash flow fell and capital spending declined less proportionally.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose significantly year over year but fell from the prior quarter. Capital expenditure was lower than both comparison periods. Free cash flow margin improved dramatically versus the year-ago quarter but weakened from the prior quarter.
- Compared with the prior quarter, free cash flow was lower despite higher revenue, as operating cash flow decreased. Versus the year-ago quarter, free cash flow was substantially higher, driven by a large increase in operating cash flow and a reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$638.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$736.0M
Cash generated by operations before capital spending.
CapEx
$98.0M
Capital spending and related asset purchases.
FCF margin
75.4%
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 | $711.0M | $952.0M | $159.0M | $793.0M | 111.5% |
| 2024-09-30 | $683.0M | $934.0M | $140.0M | $794.0M | 116.3% |
| 2024-12-31 | $789.0M | $941.0M | $174.0M | $767.0M | 97.2% |
| 2025-03-31 | $846.0M | $736.0M | $98.0M | $638.0M | 75.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 172.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.6% | 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 Improvement
Operating cash flow increased substantially compared with the year-ago quarter, while capital expenditure was lower. This combination drove a significant improvement in free cash flow and free cash flow margin.
Free cash flow and free cash flow margin reached levels well above the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose significantly year over year but fell from the prior quarter. Capital expenditure was lower than both comparison periods. Free cash flow margin improved dramatically versus the year-ago quarter but weakened from the prior quarter.
Compared with the prior quarter, free cash flow was lower despite higher revenue, as operating cash flow decreased. Versus the year-ago quarter, free cash flow was substantially higher, driven by a large increase in operating cash flow and a reduction in capital expenditure.
Monitor the trend in operating cash flow, which declined from the prior quarter after a large year-over-year increase.