Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to the prior quarter but was relatively stable versus the same quarter last year. The cash conversion rate weakened sequentially while remaining broadly consistent year-over-year.
- Revenue was lower than the prior quarter and higher than a year ago. Operating cash flow declined sequentially but increased year-over-year, while capital expenditure rose in both comparisons. The resulting free cash flow margin weakened from the previous quarter and was slightly lower than the same quarter last year.
- Compared to the prior quarter, free cash flow was lower due to a combination of lower revenue and higher capital expenditure. Versus the same quarter last year, free cash flow was slightly lower as higher operating cash flow was offset by increased capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$597.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$827.2M
Cash generated by operations before capital spending.
CapEx
$230.2M
Capital spending and related asset purchases.
FCF margin
40.5%
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 | $1.5B | $1.1B | $188.4M | $874.8M | 60.0% |
| 2024-09-30 | $1.5B | $892.9M | $186.4M | $706.5M | 47.7% |
| 2024-12-31 | $1.6B | $1.1B | $217.9M | $867.7M | 54.8% |
| 2025-03-31 | $1.5B | $827.2M | $230.2M | $597.0M | 40.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the same quarter last year, representing the strongest observable driver of the change in free cash flow. This increase absorbed a larger portion of operating cash flow.
Higher capital expenditure reduced free cash flow relative to what it would have been if spending had remained at prior levels.
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 and higher than a year ago. Operating cash flow declined sequentially but increased year-over-year, while capital expenditure rose in both comparisons. The resulting free cash flow margin weakened from the previous quarter and was slightly lower than the same quarter last year.
Compared to the prior quarter, free cash flow was lower due to a combination of lower revenue and higher capital expenditure. Versus the same quarter last year, free cash flow was slightly lower as higher operating cash flow was offset by increased capital spending.
Monitor the trend in capital expenditure, which increased in both the sequential and year-over-year comparisons.