Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to the prior quarter and the same quarter last year, as revenue increased but operating cash flow decreased. The company's liquidity discussion notes consistent cash generation from operations to meet working capital and investment needs.
- Revenue was higher, but operating cash flow was lower, leading to a lower free cash flow and margin. Capital expenditure was lower than the prior quarter but higher than the same quarter last year, further impacting free cash flow.
- Compared to the prior quarter, free cash flow and margin were slightly lower, while operating cash flow decreased and capital expenditure also decreased. Compared to the same quarter last year, free cash flow and margin were significantly lower, with operating cash flow lower and capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$377.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$831.0M
Capital spending and related asset purchases.
FCF margin
6.3%
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 | $5.4B | $1.2B | $667.0M | $487.0M | 9.0% |
| 2024-09-30 | $5.6B | $1.4B | $781.0M | $577.0M | 10.3% |
| 2024-12-31 | $5.9B | $1.5B | $1.1B | $396.0M | 6.7% |
| 2025-03-31 | $6.0B | $1.2B | $831.0M | $377.0M | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.8% | 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 Decline
Operating cash flow decreased compared to both the prior quarter and the same quarter last year, despite higher revenue. This reduction was the primary factor behind the lower free cash flow and margin.
The lower operating cash flow constrained free cash flow generation, resulting in a weakened cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow was lower, leading to a lower free cash flow and margin. Capital expenditure was lower than the prior quarter but higher than the same quarter last year, further impacting free cash flow.
Compared to the prior quarter, free cash flow and margin were slightly lower, while operating cash flow decreased and capital expenditure also decreased. Compared to the same quarter last year, free cash flow and margin were significantly lower, with operating cash flow lower and capital expenditure higher.
Monitor the trend in operating cash flow, as it declined from both the prior quarter and the year-ago quarter.