Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, driven by lower revenue and operating cash flow. Capital expenditure also decreased, but not enough to offset the decline in cash generation.
- Revenue was lower than both the preceding quarter and the year-ago period, and operating cash flow followed a similar pattern. With capital expenditure also lower, free cash flow decreased and the free cash flow margin contracted, indicating weaker cash conversion.
- Compared to the immediately preceding quarter, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were lower. The same pattern held when compared to the same quarter one year earlier, with each metric showing a decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$745.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$910.3M
Cash generated by operations before capital spending.
CapEx
$165.1M
Capital spending and related asset purchases.
FCF margin
10.0%
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 | $8.8B | $440.0M | $86.9M | $353.1M | 4.0% |
| 2024-09-30 | $8.2B | $1.3B | $193.7M | $1.1B | 13.3% |
| 2024-12-31 | $7.9B | $1.4B | $233.4M | $1.2B | 15.3% |
| 2025-03-31 | $7.4B | $910.3M | $165.1M | $745.2M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 147.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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.
Revenue decline
Revenue was lower than both the prior quarter and the same quarter last year, and operating cash flow declined in tandem. This top-line contraction was the most significant observable change among the supplied metrics.
The lower revenue base directly contributed to a weaker free cash flow margin, reducing overall cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the preceding quarter and the year-ago period, and operating cash flow followed a similar pattern. With capital expenditure also lower, free cash flow decreased and the free cash flow margin contracted, indicating weaker cash conversion.
Compared to the immediately preceding quarter, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were lower. The same pattern held when compared to the same quarter one year earlier, with each metric showing a decline.
Monitor the trend in cash and marketable securities, which decreased during the quarter as noted in the liquidity discussion.