Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all declined compared to both the prior quarter and the same quarter last year. The free cash flow margin weakened sequentially and year-over-year.
- Operating cash flow as a proportion of revenue was lower than the previous quarter and the year-ago quarter, resulting in a lower free cash flow margin. Capital expenditure was also lower in both comparisons, but the decline in operating cash flow was the primary factor in the reduced cash conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, all metrics were lower, with the free cash flow margin also showing a decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$772.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$191.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$205.9M
Cash generated by operations before capital spending.
CapEx
$14.2M
Capital spending and related asset purchases.
FCF margin
19.8%
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 | $1.2B | $377.1M | $72.9M | $304.2M | 24.5% |
| 2024-09-30 | $1.2B | $43.6M | $20.8M | $22.8M | 2.0% |
| 2024-12-31 | $1.0B | $271.5M | $18.1M | $253.4M | 24.7% |
| 2025-03-31 | $970.5M | $205.9M | $14.2M | $191.7M | 19.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -124.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 Decline
Operating cash flow decreased more sharply than revenue on a sequential and year-over-year basis, directly reducing free cash flow and the free cash flow margin. Capital expenditure was also lower, but the operating cash flow decline was the dominant factor.
The lower operating cash flow was the strongest observable driver of the weakened free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the previous quarter and the year-ago quarter, resulting in a lower free cash flow margin. Capital expenditure was also lower in both comparisons, but the decline in operating cash flow was the primary factor in the reduced cash conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, all metrics were lower, with the free cash flow margin also showing a decline.
Monitor the trend in operating cash flow relative to revenue, as its decline was the strongest observable driver of the lower free cash flow margin.