Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened this quarter as free cash flow margin declined sharply. The main driver was higher capital spending, which consumed a larger share of operating cash flow.
- Revenue was stable relative to the prior quarter, but operating cash flow decreased materially, leading to a lower free cash flow margin. Capital expenditure rose compared with both the preceding quarter and the same quarter last year, further reducing free cash flow.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin were both lower, driven by weaker operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow was lower, capital expenditure was significantly higher, and free cash flow and margin were markedly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$147.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$526.0M
Cash generated by operations before capital spending.
CapEx
$379.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 | $2.8B | $814.0M | $285.0M | $529.0M | 19.2% |
| 2024-09-30 | $2.7B | $761.0M | $539.0M | $222.0M | 8.3% |
| 2024-12-31 | $2.9B | $915.0M | $547.0M | $368.0M | 12.7% |
| 2025-03-31 | $2.9B | $526.0M | $379.0M | $147.0M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.2% | 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.
Capital expenditure increase
Capital expenditure rose from the prior quarter and was notably higher than the same quarter last year. While operating cash flow declined, the higher spending level absorbed a greater portion of cash from operations.
This shift was the strongest observable driver of the lower free cash flow and free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter, but operating cash flow decreased materially, leading to a lower free cash flow margin. Capital expenditure rose compared with both the preceding quarter and the same quarter last year, further reducing free cash flow.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin were both lower, driven by weaker operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow was lower, capital expenditure was significantly higher, and free cash flow and margin were markedly lower.
The trend in capital expenditure relative to operating cash flow should be monitored, as its increase has been the primary factor compressing free cash flow.