Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened this quarter as operating cash flow and free cash flow were lower than both the prior quarter and the same quarter last year. Revenue was stable compared to the year-ago period but slightly higher than the preceding quarter, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
- Revenue was slightly higher than the prior quarter, yet operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Compared to the same quarter last year, revenue was slightly lower while operating cash flow and free cash flow were also lower, leading to a lower free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and capital expenditure was also lower, while revenue was slightly higher. Compared to the same quarter last year, operating cash flow and free cash flow were lower, capital expenditure was higher, and revenue was slightly lower.
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
$542.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$630.0M
Cash generated by operations before capital spending.
CapEx
$88.0M
Capital spending and related asset purchases.
FCF margin
10.9%
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 | $5.2B | $1.2B | $116.7M | $1.1B | 21.6% |
| 2024-09-30 | $4.9B | $744.0M | $95.0M | $649.0M | 13.2% |
| 2024-12-31 | $4.7B | $935.0M | $121.0M | $814.0M | 17.2% |
| 2025-03-31 | $5.0B | $630.0M | $88.0M | $542.0M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, despite revenue being relatively stable. This decline directly reduced free cash flow and the free cash flow margin.
The lower operating cash flow was the strongest observable driver of the weakened free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, yet operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Compared to the same quarter last year, revenue was slightly lower while operating cash flow and free cash flow were also lower, leading to a lower free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and capital expenditure was also lower, while revenue was slightly higher. Compared to the same quarter last year, operating cash flow and free cash flow were lower, capital expenditure was higher, and revenue was slightly lower.
Monitor the trend in operating cash flow, which declined from both the prior quarter and the year-ago quarter, as it is the primary component of free cash flow.