Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved both sequentially and year-over-year, driven by stronger operating cash flow despite higher capital spending than a year ago. The free cash flow margin rose from the prior quarter but stayed nearly level with the same quarter last year.
- Revenue was modestly higher year-over-year. Operating cash flow increased both sequentially and year-over-year, while capital expenditure was roughly stable sequentially but rose compared to the prior year, resulting in higher free cash flow in both comparisons.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow both improved markedly, and the margin strengthened. Relative to the same quarter one year earlier, revenue and operating cash flow increased, capital spending was higher, free cash flow rose modestly, and the margin remained broadly stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$468.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$755.1M
Cash generated by operations before capital spending.
CapEx
$287.0M
Capital spending and related asset purchases.
FCF margin
11.3%
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 | $4.3B | $948.9M | $225.4M | $723.5M | 16.9% |
| 2024-09-30 | $4.4B | $772.0M | $258.3M | $513.7M | 11.8% |
| 2024-12-31 | $4.1B | $624.5M | $290.5M | $334.0M | 8.2% |
| 2025-03-31 | $4.1B | $755.1M | $287.0M | $468.2M | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.9% | 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 growth
Operating cash flow increased both sequentially and year-over-year, serving as the primary support for the improvement in free cash flow. This occurred even as capital expenditure rose versus the prior year.
Stronger operating cash flow enabled free cash flow expansion in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was modestly higher year-over-year. Operating cash flow increased both sequentially and year-over-year, while capital expenditure was roughly stable sequentially but rose compared to the prior year, resulting in higher free cash flow in both comparisons.
Compared with the immediately preceding quarter, operating cash flow and free cash flow both improved markedly, and the margin strengthened. Relative to the same quarter one year earlier, revenue and operating cash flow increased, capital spending was higher, free cash flow rose modestly, and the margin remained broadly stable.
Monitor the trend in capital expenditure, which increased year-over-year and may influence future free cash flow generation.