Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin improved markedly compared with both the prior quarter and the year-ago quarter. Revenue was lower, but operating cash flow and free cash flow were higher, indicating stronger cash generation relative to revenue.
- Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow was higher. Capital expenditure increased slightly, but free cash flow still rose, resulting in a higher free cash flow margin.
- Compared with the prior quarter, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the year-ago quarter, the same pattern held: revenue lower, while cash flow metrics and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$170.8M
Capital spending and related asset purchases.
FCF margin
34.0%
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 | $6.0B | $412.1M | $199.6M | $212.4M | 3.5% |
| 2024-09-30 | $7.7B | -$720.9M | $158.1M | -$879.0M | -11.5% |
| 2024-12-31 | $5.7B | $1.0B | $154.9M | $890.2M | 15.7% |
| 2025-03-31 | $3.4B | $1.3B | $170.8M | $1.2B | 34.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 4958.2% | 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.
Cash Conversion Efficiency
Despite lower revenue, the company generated higher operating cash flow and free cash flow, leading to a significantly improved free cash flow margin.
This strong cash conversion supports liquidity and reduces reliance on external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow was higher. Capital expenditure increased slightly, but free cash flow still rose, resulting in a higher free cash flow margin.
Compared with the prior quarter, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the year-ago quarter, the same pattern held: revenue lower, while cash flow metrics and margin improved.
The company's cash and cash equivalents include client cash, which is a liability and not available for general corporate purposes; the trend in this component should be monitored.