Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the prior quarter but weakened compared to the same quarter last year. The cash conversion rate rose from the previous quarter, driven by higher operating cash flow relative to revenue.
- Revenue was slightly lower than the prior quarter, yet operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure decreased from both the prior quarter and the year-ago quarter, supporting free cash flow.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow was significantly lower despite a slight revenue increase.
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
$778.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$818.9M
Cash generated by operations before capital spending.
CapEx
$40.7M
Capital spending and related asset purchases.
FCF margin
28.1%
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 | $2.6B | -$3.8B | $69.0M | -$3.8B | -144.5% |
| 2024-09-30 | $2.8B | $1.4B | $67.7M | $1.3B | 47.0% |
| 2024-12-31 | $2.9B | $584.6M | $92.6M | $492.0M | 16.9% |
| 2025-03-31 | $2.8B | $818.9M | $40.7M | $778.2M | 28.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Operating Cash Flow Improvement
Operating cash flow increased from the prior quarter, contributing to a higher free cash flow margin. Capital expenditure also declined, further supporting free cash flow.
The combination of higher operating cash flow and lower capital expenditure drove free cash flow higher sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, yet operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure decreased from both the prior quarter and the year-ago quarter, supporting free cash flow.
Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow was significantly lower despite a slight revenue increase.
Monitor operating cash flow trends, as the current quarter's level was lower than the year-ago period despite higher revenue.