Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow were lower than both the prior quarter and the same quarter last year, while revenue was slightly higher than a year ago but lower than the prior quarter. The free cash flow margin weakened compared with both periods.
- Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow and free cash flow were lower than both comparison periods, and capital expenditure was higher than a year ago but lower than the prior quarter. The free cash flow margin weakened sequentially and year-over-year.
- Compared with the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was slightly lower. Compared with the same quarter last year, revenue was slightly higher, but operating cash flow, free cash flow, and free cash flow margin were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$964.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$196.0M
Capital spending and related asset purchases.
FCF margin
12.4%
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 | $7.9B | $1.5B | $157.0M | $1.4B | 17.3% |
| 2024-09-30 | $7.8B | $1.6B | $169.0M | $1.4B | 18.4% |
| 2024-12-31 | $8.4B | $2.4B | $203.0M | $2.2B | 26.2% |
| 2025-03-31 | $7.8B | $1.2B | $196.0M | $964.0M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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, while revenue was relatively stable. This drove a lower free cash flow and a weaker free cash flow margin.
The decline in operating cash flow was the strongest observable factor reducing free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow and free cash flow were lower than both comparison periods, and capital expenditure was higher than a year ago but lower than the prior quarter. The free cash flow margin weakened sequentially and year-over-year.
Compared with the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was slightly lower. Compared with the same quarter last year, revenue was slightly higher, but operating cash flow, free cash flow, and free cash flow margin were lower, and capital expenditure was higher.
Monitor the trend in operating cash flow, which declined from both the prior quarter and the year-ago quarter.