Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow declined versus both the preceding quarter and the same quarter last year. The free cash flow margin narrowed as revenue was stable but operating cash flow decreased.
- Revenue was unchanged from a year earlier, but operating cash flow was lower, leading to a reduction in free cash flow. Capital expenditure also decreased, yet the drop in operating cash flow more than offset that benefit, resulting in a weaker free cash flow margin.
- Compared with the immediately preceding quarter, both operating cash flow and free cash flow were lower, and the margin weakened. Versus the same quarter one year ago, operating cash flow and free cash flow were also lower, with the margin narrower in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$815.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$277.0M
Capital spending and related asset purchases.
FCF margin
8.8%
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 | $8.3B | $822.0M | $367.0M | $455.0M | 5.5% |
| 2024-09-30 | $9.2B | $1.3B | $316.0M | $989.0M | 10.7% |
| 2024-12-31 | $9.6B | $1.5B | $405.0M | $1.1B | 11.0% |
| 2025-03-31 | $9.3B | $1.1B | $277.0M | $815.0M | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 202.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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.
Operating Cash Flow Decrease
Operating cash flow was lower both sequentially and year-over-year, which directly reduced free cash flow despite a slight decline in capital expenditure.
If operating cash flow does not improve, free cash flow will likely remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from a year earlier, but operating cash flow was lower, leading to a reduction in free cash flow. Capital expenditure also decreased, yet the drop in operating cash flow more than offset that benefit, resulting in a weaker free cash flow margin.
Compared with the immediately preceding quarter, both operating cash flow and free cash flow were lower, and the margin weakened. Versus the same quarter one year ago, operating cash flow and free cash flow were also lower, with the margin narrower in both comparisons.
Monitor whether operating cash flow can recover from its current lower level, as it is the primary driver of free cash flow.