Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In FY2025 Q1, revenue remained stable while operating cash flow turned strongly positive, leading to a substantial free cash flow and a healthy margin. Compared to the prior quarter's negative free cash flow, this quarter shows a clear improvement in cash generation.
- With revenue unchanged, operating cash flow increased meaningfully from a negative figure to a high positive level, enabling free cash flow and a free cash flow margin that both turned positive and improved from the prior quarter.
- Compared to the immediately preceding quarter, revenue was stable; operating cash flow, free cash flow, and margin all improved from negative to positive. Versus the same quarter one year ago, revenue was similar, while operating cash flow was slightly lower, capital expenditure was lower, and free cash flow and margin were marginally higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$550.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$632.9M
Cash generated by operations before capital spending.
CapEx
$82.0M
Capital spending and related asset purchases.
FCF margin
31.2%
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 | $1.7B | $677.7M | $103.3M | $574.4M | 33.1% |
| 2024-09-30 | $1.8B | $652.5M | $104.6M | $547.9M | 30.7% |
| 2024-12-31 | $1.8B | -$281.9M | $113.0M | -$394.9M | -21.6% |
| 2025-03-31 | $1.8B | $632.9M | $82.0M | $550.9M | 31.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Reversal in Operating Cash Flow
The strongest observable driver in the quarter was the sharp turnaround in operating cash flow from a negative prior-quarter level to a large positive amount, which directly enabled the positive free cash flow and margin.
This reversal transformed free cash flow from negative to positive and restored a healthy free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, operating cash flow increased meaningfully from a negative figure to a high positive level, enabling free cash flow and a free cash flow margin that both turned positive and improved from the prior quarter.
Compared to the immediately preceding quarter, revenue was stable; operating cash flow, free cash flow, and margin all improved from negative to positive. Versus the same quarter one year ago, revenue was similar, while operating cash flow was slightly lower, capital expenditure was lower, and free cash flow and margin were marginally higher.
Monitor whether operating cash flow can sustain at or above the current level in future quarters.