Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter one year earlier, driven by higher revenue and operating cash flow. However, free cash flow and margin weakened sequentially from the prior quarter.
- Revenue and operating cash flow both increased year over year, while capital expenditure also rose. The resulting free cash flow and free cash flow margin were higher than the same quarter last year, indicating improved cash conversion efficiency on an annual basis.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow decreased significantly, and free cash flow and margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$220.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$339.5M
Cash generated by operations before capital spending.
CapEx
$118.9M
Capital spending and related asset purchases.
FCF margin
4.7%
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 | $5.3B | $695.9M | $72.9M | $623.0M | 11.7% |
| 2024-09-30 | $5.4B | $1.3B | $88.3M | $1.2B | 22.3% |
| 2024-12-31 | $4.9B | $899.9M | $125.6M | $774.3M | 15.9% |
| 2025-03-31 | $4.7B | $339.5M | $118.9M | $220.6M | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 36.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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.
Year-over-Year Revenue Growth
Revenue was higher compared to the same quarter one year earlier, which supported an increase in operating cash flow and free cash flow. This was the strongest observable driver of the year-over-year improvement in cash generation.
Higher revenue contributed to a stronger free cash flow margin compared to the prior year quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased year over year, while capital expenditure also rose. The resulting free cash flow and free cash flow margin were higher than the same quarter last year, indicating improved cash conversion efficiency on an annual basis.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow decreased significantly, and free cash flow and margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and margin were all higher.
Monitor the trend in operating cash flow, which declined sharply from the prior quarter despite higher year-over-year levels.