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 was modest relative to revenue, reflecting a low conversion rate. Compared to the prior quarter, free cash flow and margin weakened, but both improved versus the same quarter one year earlier.
- Revenue generated operating cash flow that, after capital expenditure, resulted in free cash flow and a free cash flow margin below the prior quarter's level.
- Sequentially, revenue, operating cash flow, and free cash flow were lower, with margin substantially weakened. Year over year, revenue was higher, operating cash flow was slightly higher, capital expenditure was lower, and free cash flow and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$127.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$250.0M
Cash generated by operations before capital spending.
CapEx
$123.0M
Capital spending and related asset purchases.
FCF margin
2.2%
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 | $5.4B | $633.0M | $152.0M | $481.0M | 8.9% |
| 2024-09-30 | $5.5B | $1.5B | $170.0M | $1.3B | 23.7% |
| 2024-12-31 | $6.4B | $1.9B | $266.0M | $1.7B | 25.9% |
| 2025-03-31 | $5.9B | $250.0M | $123.0M | $127.0M | 2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 19.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.5B | 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
Operating cash flow dropped significantly from the previous quarter, resulting in a low free cash flow margin despite lower capital expenditure.
The reduced operating cash flow constrained free cash flow generation in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated operating cash flow that, after capital expenditure, resulted in free cash flow and a free cash flow margin below the prior quarter's level.
Sequentially, revenue, operating cash flow, and free cash flow were lower, with margin substantially weakened. Year over year, revenue was higher, operating cash flow was slightly higher, capital expenditure was lower, and free cash flow and margin improved.
Monitor the effect of the completed Inari acquisition on future operating cash flow and capital expenditure.