Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, supported by operating cash flow that improved from the same quarter last year. However, cash conversion weakened sequentially as operating cash flow declined from the prior quarter.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow improved from the year-ago level but decreased sharply from the prior quarter. Capital expenditure was stable compared to a year ago and lower than the prior quarter. Free cash flow turned positive from a negative year-ago figure, yet the free cash flow margin remained modest.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all decreased. Compared to the same quarter last year, revenue was slightly lower, operating cash flow and free cash flow improved, capital expenditure was nearly unchanged, and free cash flow margin turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$262.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$660.0M
Cash generated by operations before capital spending.
CapEx
$398.0M
Capital spending and related asset purchases.
FCF margin
3.1%
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 | $9.1B | $1.4B | $463.0M | $973.0M | 10.6% |
| 2024-09-30 | $9.2B | $2.4B | $460.0M | $2.0B | 21.7% |
| 2024-12-31 | $9.3B | $2.4B | $609.0M | $1.8B | 19.2% |
| 2025-03-31 | $8.5B | $660.0M | $398.0M | $262.0M | 3.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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 Volatility
Operating cash flow improved from the year-ago quarter but fell substantially from the prior quarter. The sequential decline was the strongest observable change among the key cash flow metrics.
The sequential drop in operating cash flow was the primary factor behind the lower free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow improved from the year-ago level but decreased sharply from the prior quarter. Capital expenditure was stable compared to a year ago and lower than the prior quarter. Free cash flow turned positive from a negative year-ago figure, yet the free cash flow margin remained modest.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all decreased. Compared to the same quarter last year, revenue was slightly lower, operating cash flow and free cash flow improved, capital expenditure was nearly unchanged, and free cash flow margin turned positive.
Monitor the level of operating cash flow relative to revenue, as it declined sequentially despite a smaller revenue drop.