Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to a year ago but lower than the prior quarter. Free cash flow and its margin improved slightly year over year but weakened significantly from the preceding quarter.
- With revenue stable sequentially, operating cash flow declined sharply while capital expenditure remained relatively steady, resulting in a much lower conversion to free cash flow. The free cash flow margin narrowed accordingly in the sequential comparison.
- Compared to the prior quarter, all cash flow metrics and the margin were lower; the decline in operating cash flow drove the weakening. Versus the same quarter a year earlier, revenue was unchanged, while operating cash flow, free cash flow, and its margin were all slightly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$156.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$190.0M
Cash generated by operations before capital spending.
CapEx
$34.0M
Capital spending and related asset purchases.
FCF margin
4.7%
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 | $3.6B | $308.0M | $24.0M | $284.0M | 7.9% |
| 2024-09-30 | $3.5B | $394.0M | $32.0M | $362.0M | 10.2% |
| 2024-12-31 | $3.7B | $690.0M | $39.0M | $651.0M | 17.7% |
| 2025-03-31 | $3.4B | $190.0M | $34.0M | $156.0M | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 64.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.4B | 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 Volatility
The sharp sequential drop in operating cash flow was the strongest observable driver of the free cash flow decline, while capital expenditure remained narrow. This shift occurred despite revenue being relatively stable from quarter to quarter.
If operating cash flow does not rebound, free cash flow and margin are likely to remain constrained relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue stable sequentially, operating cash flow declined sharply while capital expenditure remained relatively steady, resulting in a much lower conversion to free cash flow. The free cash flow margin narrowed accordingly in the sequential comparison.
Compared to the prior quarter, all cash flow metrics and the margin were lower; the decline in operating cash flow drove the weakening. Versus the same quarter a year earlier, revenue was unchanged, while operating cash flow, free cash flow, and its margin were all slightly improved.
Monitor whether operating cash flow can recover to the level seen in the immediately preceding quarter, as it is the primary driver of free cash flow variation.