Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved compared to both periods, with free cash flow turning positive.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow and a positive margin, a shift from negative margins in both comparison periods.
- Compared to the prior quarter, revenue was lower while operating cash flow was higher and capital expenditure was lower, leading to a significant improvement in free cash flow. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, and free cash flow were higher, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$650.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$49.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$686.4M
Cash generated by operations before capital spending.
CapEx
$637.3M
Capital spending and related asset purchases.
FCF margin
2.3%
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 | $1.1B | $445.5M | $629.8M | -$184.3M | -17.5% |
| 2024-09-30 | $1.0B | $340.0M | $634.7M | -$294.7M | -28.2% |
| 2024-12-31 | $5.3B | $539.8M | $760.0M | -$220.2M | -4.2% |
| 2025-03-31 | $2.1B | $686.4M | $637.3M | $49.1M | 2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 10.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.6% | 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 strength
Operating cash flow was the strongest observable driver, as it increased versus both the prior quarter and the year-ago quarter, enabling positive free cash flow despite higher capital expenditure than a year ago.
The improvement in operating cash flow was the primary factor behind the shift from negative to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow and a positive margin, a shift from negative margins in both comparison periods.
Compared to the prior quarter, revenue was lower while operating cash flow was higher and capital expenditure was lower, leading to a significant improvement in free cash flow. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, and free cash flow were higher, while capital expenditure was higher.
Monitor whether operating cash flow can sustain its level relative to capital expenditure in future quarters.