Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both decreased compared to the prior quarter and the same quarter last year. Free cash flow margin weakened versus both periods, driven by lower operating cash flow and higher capital expenditure.
- Operating cash flow was lower than revenue, resulting in a free cash flow margin that was lower than the prior quarter and significantly lower than the same quarter last year. Capital expenditure increased compared to both periods, further reducing free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were substantially lower, and capital expenditure was higher.
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
$815.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$229.3M
Capital spending and related asset purchases.
FCF margin
26.9%
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 | $3.5B | $354.0M | $180.5M | $173.5M | 4.9% |
| 2024-09-30 | $3.7B | $1.3B | $241.9M | $1.0B | 28.2% |
| 2024-12-31 | $3.8B | $1.3B | $199.6M | $1.1B | 28.1% |
| 2025-03-31 | $3.0B | $1.0B | $229.3M | $815.8M | 26.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.6% | 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 capital expenditure increased. This combination drove free cash flow and margin lower.
The lower operating cash flow was the primary factor behind 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.
Operating cash flow was lower than revenue, resulting in a free cash flow margin that was lower than the prior quarter and significantly lower than the same quarter last year. Capital expenditure increased compared to both periods, further reducing free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were substantially lower, and capital expenditure was higher.
Monitor the trajectory of operating cash flow, which declined from both the prior quarter and the year-ago quarter.