Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter, while free cash flow margin narrowed slightly. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
- Operating cash flow as a share of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased relative to both comparison periods, resulting in free cash flow that improved sequentially but weakened year over year.
- Compared to the immediately preceding quarter, revenue and operating cash flow improved, while free cash flow margin was slightly lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$672.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$757.0M
Cash generated by operations before capital spending.
CapEx
$85.0M
Capital spending and related asset purchases.
FCF margin
34.9%
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 | $1.8B | $686.0M | $93.0M | $593.0M | 32.6% |
| 2024-09-30 | $1.8B | $703.0M | $72.0M | $631.0M | 34.8% |
| 2024-12-31 | $1.7B | $674.0M | $74.0M | $600.0M | 35.9% |
| 2025-03-31 | $1.9B | $757.0M | $85.0M | $672.0M | 34.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.7B | 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 was higher than both the prior quarter and the year-ago quarter, which contributed to the sequential improvement in free cash flow being smaller than the rise in operating cash flow and to the year-over-year decline in free cash flow.
Higher capital outlays absorbed a larger portion of operating cash flow, reducing free cash flow relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased relative to both comparison periods, resulting in free cash flow that improved sequentially but weakened year over year.
Compared to the immediately preceding quarter, revenue and operating cash flow improved, while free cash flow margin was slightly lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor whether the year-over-year decline in free cash flow margin persists, given the combination of higher revenue and lower cash conversion.