Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was stable sequentially and higher year-over-year, while operating cash flow increased relative to both periods. With capital expenditure lower than both the prior quarter and the year-ago quarter, free cash flow rose and the free cash flow margin improved.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by lower capital expenditure on similar revenue. Versus the same quarter one year earlier, free cash flow and margin were also higher, supported by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$566.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$459.0M
Capital spending and related asset purchases.
FCF margin
14.1%
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 | $4.0B | $1.1B | $403.4M | $696.6M | 17.2% |
| 2024-09-30 | $4.1B | $1.0B | $453.7M | $549.3M | 13.5% |
| 2024-12-31 | $4.0B | $1.0B | $498.0M | $524.0M | 13.0% |
| 2025-03-31 | $4.0B | $1.0B | $459.0M | $566.0M | 14.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.4% | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing the primary support for the increase in free cash flow.
Higher operating cash flow, combined with lower capital expenditure, drove free cash flow and margin higher.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year-over-year, while operating cash flow increased relative to both periods. With capital expenditure lower than both the prior quarter and the year-ago quarter, free cash flow rose and the free cash flow margin improved.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by lower capital expenditure on similar revenue. Versus the same quarter one year earlier, free cash flow and margin were also higher, supported by higher operating cash flow and lower capital expenditure.
Monitor the trend in capital expenditure, as its reduction was a key factor in the free cash flow improvement this quarter.