Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow improved year over year, though operating cash flow declined sharply from the prior quarter. Free cash flow margin, while higher than a year ago, contracted sequentially.
- Operating cash flow was insufficient to cover higher capital expenditure, resulting in positive but much lower free cash flow compared to the prior quarter. The free cash flow margin narrowed as revenue grew faster than the conversion into cash.
- Compared to the prior quarter, operating cash flow and free cash flow were lower despite higher revenue, while capital expenditure increased. Versus the same quarter last year, all metrics were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$275.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$904.0M
Cash generated by operations before capital spending.
CapEx
$629.0M
Capital spending and related asset purchases.
FCF margin
3.4%
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 | $4.9B | $1.4B | $479.0M | $951.0M | 19.4% |
| 2024-09-30 | $5.0B | $1.3B | $468.0M | $783.0M | 15.6% |
| 2024-12-31 | $7.0B | $1.6B | $562.0M | $1.0B | 15.0% |
| 2025-03-31 | $8.0B | $904.0M | $629.0M | $275.0M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 43.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue increased both sequentially and year over year, providing a stronger base for free cash flow generation. However, operating cash flow did not keep pace, leading to a lower conversion rate.
Revenue growth supported year-over-year improvement in free cash flow, but the sequential decline in cash conversion efficiency constrained the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was insufficient to cover higher capital expenditure, resulting in positive but much lower free cash flow compared to the prior quarter. The free cash flow margin narrowed as revenue grew faster than the conversion into cash.
Compared to the prior quarter, operating cash flow and free cash flow were lower despite higher revenue, while capital expenditure increased. Versus the same quarter last year, all metrics were higher, and the free cash flow margin improved.
Monitor the cash flow impact from the EnLink acquisition integration and the new joint venture capital commitments.