Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue held stable versus the prior quarter and was higher year-over-year. Free cash flow declined compared with both the immediate preceding quarter and the same quarter one year earlier, driven by a drop in operating cash flow relative to the sequential period.
- Operating cash flow decreased from the prior quarter and the year-ago quarter, while capital expenditure was lower sequentially but higher year-over-year. The resulting free cash flow margin weakened compared with both comparison periods, indicating a lower proportion of revenue converted into free cash flow.
- Compared with the preceding quarter, revenue was stable while operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was higher but both operating cash flow and free cash flow were lower, resulting in a mixed performance.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$121.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$360.0M
Cash generated by operations before capital spending.
CapEx
$239.0M
Capital spending and related asset purchases.
FCF margin
3.0%
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 | $3.9B | $679.3M | $241.4M | $437.9M | 11.2% |
| 2024-09-30 | $4.0B | $333.0M | $247.9M | $85.0M | 2.1% |
| 2024-12-31 | $4.1B | $658.4M | $245.9M | $412.5M | 10.0% |
| 2025-03-31 | $4.1B | $360.0M | $239.0M | $121.0M | 3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 38.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 Contraction
Operating cash flow declined to its lowest level among the three reported periods, while capital expenditure remained relatively elevated both sequentially and year-over-year. The combination compressed free cash flow significantly despite stable to higher revenue.
The lower operating cash flow is the strongest observable factor reducing free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased from the prior quarter and the year-ago quarter, while capital expenditure was lower sequentially but higher year-over-year. The resulting free cash flow margin weakened compared with both comparison periods, indicating a lower proportion of revenue converted into free cash flow.
Compared with the preceding quarter, revenue was stable while operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was higher but both operating cash flow and free cash flow were lower, resulting in a mixed performance.
Monitor the trend of operating cash flow relative to revenue, as it decreased sequentially despite stable revenue and fell year-over-year even as revenue rose.