Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the immediately preceding quarter and the same quarter one year earlier. Free cash flow margin weakened versus the prior quarter but was near the year-ago level.
- Operating cash flow was lower than the preceding quarter while capital expenditure rose, resulting in a free cash flow that was lower than the prior quarter but comparable to the year-ago quarter. The free cash flow margin contracted from the previous quarter but remained close to the year-ago figure.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were both lower, and the free cash flow margin narrowed. Relative to the same quarter one year earlier, revenue was higher, operating cash flow was slightly higher, free cash flow was slightly lower, and the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$910.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$953.0M
Cash generated by operations before capital spending.
CapEx
$43.0M
Capital spending and related asset purchases.
FCF margin
24.1%
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 | $3.5B | $1.6B | $32.0M | $1.5B | 42.9% |
| 2024-09-30 | $3.6B | $1.4B | $35.0M | $1.4B | 39.4% |
| 2024-12-31 | $3.6B | $1.7B | $33.0M | $1.7B | 47.5% |
| 2025-03-31 | $3.8B | $953.0M | $43.0M | $910.0M | 24.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.9B | 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
Revenue rose versus both the prior quarter and the year-ago quarter, yet operating cash flow fell sharply from the prior quarter and was only slightly above the year-ago level. This divergence is the most observable factor affecting free cash flow this quarter.
Free cash flow was lower than the prior quarter despite higher revenue, driven primarily by the lower operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the preceding quarter while capital expenditure rose, resulting in a free cash flow that was lower than the prior quarter but comparable to the year-ago quarter. The free cash flow margin contracted from the previous quarter but remained close to the year-ago figure.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were both lower, and the free cash flow margin narrowed. Relative to the same quarter one year earlier, revenue was higher, operating cash flow was slightly higher, free cash flow was slightly lower, and the free cash flow margin was slightly lower.
Monitor whether the operating cash flow recovers toward the prior quarter level, given its material decline with only a modest revenue increase.