Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable, while free cash flow improved significantly compared to both the prior quarter and the same quarter last year. The improvement was driven by a lower capital expenditure and a slightly higher operating cash flow.
- Operating cash flow was nearly unchanged from the prior quarter but higher than a year ago. With capital expenditure reduced, free cash flow and free cash flow margin both rose markedly.
- Compared to the prior quarter, free cash flow and free cash flow margin were higher, driven by a lower capital expenditure. Versus the same quarter last year, free cash flow and margin also improved, supported by higher operating cash flow and lower capital expenditure.
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
$501.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$950.0M
Cash generated by operations before capital spending.
CapEx
$449.0M
Capital spending and related asset purchases.
FCF margin
16.7%
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 | $3.0B | $1.0B | $568.0M | $468.0M | 15.4% |
| 2024-09-30 | $3.1B | $1.2B | $581.0M | $645.0M | 21.1% |
| 2024-12-31 | $3.0B | $951.0M | $675.0M | $276.0M | 9.1% |
| 2025-03-31 | $3.0B | $950.0M | $449.0M | $501.0M | 16.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.0% | 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.
Lower Capital Expenditure
Capital expenditure was lower than both the prior quarter and the same quarter last year, which directly boosted free cash flow and margin despite stable revenue and operating cash flow.
This was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was nearly unchanged from the prior quarter but higher than a year ago. With capital expenditure reduced, free cash flow and free cash flow margin both rose markedly.
Compared to the prior quarter, free cash flow and free cash flow margin were higher, driven by a lower capital expenditure. Versus the same quarter last year, free cash flow and margin also improved, supported by higher operating cash flow and lower capital expenditure.
Monitor whether capital expenditure remains at this lower level or reverts toward prior periods.