Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was essentially stable versus the prior quarter while free cash flow weakened due to lower operating cash flow. Compared with the same quarter last year, free cash flow was slightly lower despite higher revenue, as capital expenditure increased.
- Revenue was essentially unchanged from the prior quarter, but operating cash flow declined, and capital expenditure was slightly lower, resulting in lower free cash flow and a weakened free cash flow margin. Compared with the same quarter a year ago, revenue was higher, operating cash flow was essentially stable, while capital expenditure rose, leading to slightly lower free cash flow and a weakened free cash flow margin.
- Compared with the prior quarter, free cash flow and free cash flow margin both weakened, driven by lower operating cash flow. Compared with the same quarter last year, free cash flow was slightly lower while revenue was higher, with the margin weakened mainly due to higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$290.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$301.7M
Cash generated by operations before capital spending.
CapEx
$11.6M
Capital spending and related asset purchases.
FCF margin
38.9%
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 | $707.9M | $349.2M | $8.6M | $340.6M | 48.1% |
| 2024-09-30 | $724.7M | $421.6M | $6.6M | $415.0M | 57.3% |
| 2024-12-31 | $743.5M | $430.6M | $14.2M | $416.4M | 56.0% |
| 2025-03-31 | $745.8M | $301.7M | $11.6M | $290.1M | 38.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | 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
The most observable change was the decline in operating cash flow from the prior quarter, which directly reduced free cash flow and margin even though revenue was nearly unchanged.
This driver caused free cash flow margin to weaken compared with both the prior quarter and the same quarter last year.
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 operating cash flow declined, and capital expenditure was slightly lower, resulting in lower free cash flow and a weakened free cash flow margin. Compared with the same quarter a year ago, revenue was higher, operating cash flow was essentially stable, while capital expenditure rose, leading to slightly lower free cash flow and a weakened free cash flow margin.
Compared with the prior quarter, free cash flow and free cash flow margin both weakened, driven by lower operating cash flow. Compared with the same quarter last year, free cash flow was slightly lower while revenue was higher, with the margin weakened mainly due to higher capital expenditure.
Monitor whether the lower operating cash flow relative to revenue in the current quarter is a temporary pattern or a sustained trend.