Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive this quarter, driving free cash flow to a positive margin after two consecutive quarters of negative free cash flow. Revenue was stable sequentially and higher year-over-year, while capital expenditure declined from both prior periods.
- Revenue was stable sequentially and higher year-over-year. Operating cash flow shifted from negative to positive, and with lower capital expenditure, free cash flow turned positive with a high margin.
- Compared to the prior quarter, operating cash flow improved from negative to positive, and free cash flow margin strengthened from negative to positive. Versus the same quarter last year, both operating cash flow and free cash flow also improved from negative to positive, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$12.4M
Capital spending and related asset purchases.
FCF margin
225.5%
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 | $1.2B | $3.0B | $20.8M | $3.0B | 254.7% |
| 2024-09-30 | $1.2B | $611.1M | $25.7M | $585.4M | 48.9% |
| 2024-12-31 | $1.2B | -$2.6B | $40.7M | -$2.7B | -218.9% |
| 2025-03-31 | $1.2B | $2.7B | $12.4M | $2.7B | 225.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 698.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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.
Operating Cash Flow Turnaround
Operating cash flow shifted from negative in both the prior quarter and the year-ago quarter to positive this quarter, which was the primary factor behind the improvement in free cash flow.
This turnaround enabled free cash flow to become positive with a high margin, reversing the negative free cash flow seen in both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year-over-year. Operating cash flow shifted from negative to positive, and with lower capital expenditure, free cash flow turned positive with a high margin.
Compared to the prior quarter, operating cash flow improved from negative to positive, and free cash flow margin strengthened from negative to positive. Versus the same quarter last year, both operating cash flow and free cash flow also improved from negative to positive, while revenue was higher.
Monitor whether operating cash flow can sustain its positive level in the coming quarter.