Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow improved compared to both the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter but was lower than the year-ago period.
- The free cash flow margin improved sharply from the prior quarter's negative level to a positive margin, though it remained below the year-ago margin. The conversion was supported by a lower capital expenditure relative to operating cash flow compared to the prior quarter.
- Compared to the prior quarter, revenue and operating cash flow increased while capital expenditure decreased significantly, resulting in a swing to positive free cash flow. Versus the year-ago quarter, revenue and operating cash flow were higher, but capital expenditure was also higher, leading to lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$893.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$421.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
10.1%
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 | $2.8B | $1.3B | $579.0M | $700.0M | 24.6% |
| 2024-09-30 | $3.0B | $1.2B | $682.0M | $561.0M | 18.5% |
| 2024-12-31 | $3.4B | $1.2B | $3.8B | -$2.6B | -75.5% |
| 2025-03-31 | $4.2B | $1.4B | $1.0B | $421.0M | 10.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.2% | 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.
Capital Expenditure Reduction
Capital expenditure decreased substantially from the prior quarter, flipping free cash flow from negative to positive.
This reduction was the primary factor behind the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin improved sharply from the prior quarter's negative level to a positive margin, though it remained below the year-ago margin. The conversion was supported by a lower capital expenditure relative to operating cash flow compared to the prior quarter.
Compared to the prior quarter, revenue and operating cash flow increased while capital expenditure decreased significantly, resulting in a swing to positive free cash flow. Versus the year-ago quarter, revenue and operating cash flow were higher, but capital expenditure was also higher, leading to lower free cash flow and margin.
Monitor the level of capital expenditure relative to operating cash flow, as it is a key determinant of free cash flow variability.