Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as capital expenditure declined sharply, while operating cash flow remained stable. Compared to the same quarter last year, free cash flow decreased due to higher capital spending.
- Revenue was essentially unchanged from the prior quarter, but a lower capital expenditure drove a higher free cash flow margin. Operating cash flow was similar to the year-ago level, yet a larger capital outlay reduced free cash flow conversion.
- Compared to the prior quarter, free cash flow and margin improved, helped by a lower capital expenditure. Versus the same quarter a year ago, free cash flow and margin weakened, as capital expenditure rose while revenue edged lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$319.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$547.1M
Cash generated by operations before capital spending.
CapEx
$228.0M
Capital spending and related asset purchases.
FCF margin
7.5%
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 | $4.3B | $474.2M | $238.2M | $236.0M | 5.5% |
| 2024-09-30 | $4.2B | $667.4M | $336.3M | $331.2M | 7.9% |
| 2024-12-31 | $4.3B | $671.6M | $404.0M | $267.5M | 6.2% |
| 2025-03-31 | $4.3B | $547.1M | $228.0M | $319.0M | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 214.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.1B | 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 Reduction
Capital expenditure decreased compared to the prior quarter, contributing to the sequential improvement in free cash flow. The filing notes that investing cash flows fluctuate due to the timing of maintenance and strategic projects.
This lower capital outlay directly boosted free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was essentially unchanged from the prior quarter, but a lower capital expenditure drove a higher free cash flow margin. Operating cash flow was similar to the year-ago level, yet a larger capital outlay reduced free cash flow conversion.
Compared to the prior quarter, free cash flow and margin improved, helped by a lower capital expenditure. Versus the same quarter a year ago, free cash flow and margin weakened, as capital expenditure rose while revenue edged lower.
Monitor the trajectory of capital expenditure in upcoming quarters, as it has been a significant factor in free cash flow variation.