Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were higher compared to the same quarter a year earlier, with free cash flow margin stable year over year. Sequentially, revenue increased but operating cash flow, free cash flow, and margin all declined.
- Operating cash flow was lower than the prior quarter but higher than the same quarter last year. Capital expenditure decreased sequentially and increased year over year, resulting in free cash flow that followed a similar pattern as operating cash flow.
- Compared to the prior quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin was unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$614.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$663.0M
Cash generated by operations before capital spending.
CapEx
$49.0M
Capital spending and related asset purchases.
FCF margin
29.3%
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 | $460.0M | $52.0M | $408.0M | 22.8% |
| 2024-09-30 | $1.9B | $244.0M | $56.0M | $188.0M | 9.9% |
| 2024-12-31 | $2.0B | $705.0M | $60.0M | $645.0M | 31.8% |
| 2025-03-31 | $2.1B | $663.0M | $49.0M | $614.0M | 29.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 155.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year revenue expansion
Revenue was higher compared to the same quarter one year earlier, and this was accompanied by higher operating cash flow and free cash flow despite a modest increase in capital expenditure.
The higher revenue supported an increase in free cash flow relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the same quarter last year. Capital expenditure decreased sequentially and increased year over year, resulting in free cash flow that followed a similar pattern as operating cash flow.
Compared to the prior quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin was unchanged.
Monitor the trend in free cash flow margin, which was stable year over year but weakened sequentially.