Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable, but operating cash flow weakened significantly, causing free cash flow to be lower than both the prior quarter and the year-ago period. Capital expenditure rose compared to both periods, reducing the cash conversion rate.
- Operating cash flow as a proportion of revenue declined from the previous quarter and the year-ago quarter, while capital expenditure consumed most of that cash flow. The resulting free cash flow margin was lower than both comparable periods.
- Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, leading to a substantially lower free cash flow. Versus the same quarter one year earlier, operating cash flow was higher but capital expenditure rose by a greater extent, resulting in a lower free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$639.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$162.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$954.4M
Cash generated by operations before capital spending.
CapEx
$792.2M
Capital spending and related asset purchases.
FCF margin
3.6%
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 | $3.6B | $904.5M | $740.3M | $164.2M | 4.6% |
| 2024-09-30 | $3.9B | $540.9M | $828.8M | -$287.9M | -7.5% |
| 2024-12-31 | $4.4B | $1.3B | $726.9M | $601.0M | 13.6% |
| 2025-03-31 | $4.6B | $954.4M | $792.2M | $162.2M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.1B | 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 in the current quarter was higher than both the prior quarter and the year-ago quarter, outpacing the increase in operating cash flow. This directly reduced free cash flow despite stable revenue.
Sustained high capital expenditure could continue to pressure free cash flow unless operating cash flow improves proportionally.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue declined from the previous quarter and the year-ago quarter, while capital expenditure consumed most of that cash flow. The resulting free cash flow margin was lower than both comparable periods.
Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, leading to a substantially lower free cash flow. Versus the same quarter one year earlier, operating cash flow was higher but capital expenditure rose by a greater extent, resulting in a lower free cash flow.
Monitor whether capital expenditure moderates in coming quarters, as its elevated level is the primary observable factor compressing free cash flow.