Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow margin contracted sharply compared to both the prior quarter and the same quarter last year. Operating cash flow declined substantially while revenue remained relatively stable, leading to a lower free cash flow.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow fell significantly, and capital expenditure was modestly higher than the prior quarter, resulting in a much lower free cash flow and margin.
- Free cash flow and margin were lower than both the preceding quarter and the same quarter one year earlier. Operating cash flow showed a similar weakening pattern, while revenue was between the two comparison periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$71.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$117.0M
Cash generated by operations before capital spending.
CapEx
$46.0M
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 | $3.8B | $711.0M | $56.0M | $655.0M | 17.4% |
| 2024-09-30 | $4.0B | $510.0M | $50.0M | $460.0M | 11.5% |
| 2024-12-31 | $4.0B | $830.0M | $41.0M | $789.0M | 19.6% |
| 2025-03-31 | $3.8B | $117.0M | $46.0M | $71.0M | 1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 14.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Sharp decline in operating cash flow
Operating cash flow decreased significantly from the prior quarter, driving free cash flow to a much lower level despite relatively stable revenue. Capital expenditure increased slightly, further reducing free cash flow.
The weakened cash conversion efficiency warrants attention to the company's ability to generate free cash from its operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow fell significantly, and capital expenditure was modestly higher than the prior quarter, resulting in a much lower free cash flow and margin.
Free cash flow and margin were lower than both the preceding quarter and the same quarter one year earlier. Operating cash flow showed a similar weakening pattern, while revenue was between the two comparison periods.
Monitor the evolution of operating cash flow relative to revenue, as the current quarter's conversion rate was substantially below recent levels.