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 quarter, improving from a negative position in the prior period, but remained lower than the same quarter last year. The swing was driven by higher operating cash flow and lower capital expenditure, although revenue declined slightly from the prior quarter.
- Revenue decreased from the prior quarter but increased compared to the same quarter last year. Operating cash flow rose from the previous quarter, while capital expenditure fell, resulting in positive free cash flow and a free cash flow margin that improved from negative to positive.
- Compared to the immediately preceding quarter, free cash flow turned from negative to positive, supported by higher operating cash flow and lower capital spending. Relative to the same quarter one year earlier, free cash flow and its margin were lower, as operating cash flow declined and capital expenditure edged higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$512.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$647.0M
Cash generated by operations before capital spending.
CapEx
$135.0M
Capital spending and related asset purchases.
FCF margin
8.2%
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 | $6.4B | $772.0M | $125.0M | $647.0M | 10.0% |
| 2024-09-30 | $6.3B | $880.0M | $174.0M | $706.0M | 11.3% |
| 2024-12-31 | $6.4B | $318.0M | $342.0M | -$24.0M | -0.4% |
| 2025-03-31 | $6.3B | $647.0M | $135.0M | $512.0M | 8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $500.0M | 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 rose significantly from the prior quarter, more than offsetting the slight decline in revenue and playing a key role in the shift to positive free cash flow.
This improvement was the primary factor behind the quarter's free cash flow turnaround.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Operating cash flow rose from the previous quarter, while capital expenditure fell, resulting in positive free cash flow and a free cash flow margin that improved from negative to positive.
Compared to the immediately preceding quarter, free cash flow turned from negative to positive, supported by higher operating cash flow and lower capital spending. Relative to the same quarter one year earlier, free cash flow and its margin were lower, as operating cash flow declined and capital expenditure edged higher.
Monitor the level of free cash flow margin relative to the prior year quarter, as it weakened despite the sequential improvement.