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 sequentially, driven by a sharp decline in operating cash flow and elevated capital expenditure. Year-over-year revenue improved, but free cash flow declined as capital spending increased at a faster pace.
- Operating cash flow as a share of revenue decreased markedly from the prior quarter but remained near the year-ago level. Capital expenditure rose substantially from both comparison periods, reducing the conversion of operating cash flow into free cash flow and compressing the free cash flow margin.
- Compared to the immediately preceding quarter, all cash flow measures weakened, with free cash flow declining significantly. Relative to the same quarter one year earlier, revenue improved but free cash flow and margin were lower due to higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$110.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$243.2M
Cash generated by operations before capital spending.
CapEx
$132.8M
Capital spending and related asset purchases.
FCF margin
1.8%
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 | $5.6B | $391.3M | $161.5M | $229.9M | 4.1% |
| 2024-09-30 | $6.5B | $739.9M | $212.5M | $527.4M | 8.1% |
| 2024-12-31 | $6.6B | $712.0M | $147.0M | $565.0M | 8.6% |
| 2025-03-31 | $6.2B | $243.2M | $132.8M | $110.4M | 1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Capital Expenditure Increase
Capital expenditure rose significantly from both the prior quarter and the year-ago period, outpacing the growth in operating cash flow. The filing indicates the company plans to fund capital expenditure through available liquidity and operations, consistent with its broader capital deployment priorities.
Higher capital spending consumed a larger share of operating cash flow, reducing free cash flow and margin despite stable revenue trends.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue decreased markedly from the prior quarter but remained near the year-ago level. Capital expenditure rose substantially from both comparison periods, reducing the conversion of operating cash flow into free cash flow and compressing the free cash flow margin.
Compared to the immediately preceding quarter, all cash flow measures weakened, with free cash flow declining significantly. Relative to the same quarter one year earlier, revenue improved but free cash flow and margin were lower due to higher capital expenditure.
Monitor capital expenditure trends relative to operating cash flow, as elevated spending pressured free cash flow in the current quarter.