Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter with a much improved margin compared to both the prior quarter and the same quarter last year. Revenue was slightly lower than the prior quarter but higher than a year ago, while operating cash flow strengthened substantially.
- Operating cash flow was well above capital expenditure, yielding a solid free cash flow margin. Revenue conversion improved as operating cash flow grew faster than revenue declined from the prior quarter, and capital expenditure was lower than a year ago.
- Compared to the prior quarter, free cash flow rose sharply from a near-breakeven level as operating cash flow more than offset a modest increase in capital expenditure. Versus the same quarter a year ago, free cash flow reversed from a deficit to a surplus, driven by a swing in operating cash flow from negative to positive while capital expenditure declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$572.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$333.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$860.0M
Cash generated by operations before capital spending.
CapEx
$527.0M
Capital spending and related asset purchases.
FCF margin
5.2%
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 | $7.4B | -$23.0M | $494.0M | -$517.0M | -7.0% |
| 2024-09-30 | $6.9B | $113.0M | $517.0M | -$404.0M | -5.9% |
| 2024-12-31 | $6.9B | $476.0M | $460.0M | $16.0M | 0.2% |
| 2025-03-31 | $6.4B | $860.0M | $527.0M | $333.0M | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -223.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.2% | 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 Recovery
Operating cash flow increased strongly from both the prior quarter and the same quarter last year, more than covering capital expenditure. This was the predominant factor behind the positive free cash flow.
The strengthened operating cash flow boosted free cash flow and margin, marking a notable cash conversion improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was well above capital expenditure, yielding a solid free cash flow margin. Revenue conversion improved as operating cash flow grew faster than revenue declined from the prior quarter, and capital expenditure was lower than a year ago.
Compared to the prior quarter, free cash flow rose sharply from a near-breakeven level as operating cash flow more than offset a modest increase in capital expenditure. Versus the same quarter a year ago, free cash flow reversed from a deficit to a surplus, driven by a swing in operating cash flow from negative to positive while capital expenditure declined.
Monitor whether operating cash flow remains at the current elevated level in upcoming quarters, given the sequential decline in revenue.