Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a negative prior quarter, though it remained well below the year-ago level. The improvement was driven by a sharp rise in operating cash flow, while capital expenditure stayed relatively stable.
- Revenue was slightly lower than both the prior quarter and the year-ago quarter. Operating cash flow improved significantly from the prior quarter but was much lower than a year ago, resulting in a free cash flow margin that turned positive from negative sequentially but remained well below the year-ago margin.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow. Versus the same quarter last year, free cash flow was substantially lower, reflecting a much weaker operating cash flow despite similar capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$101.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$133.3M
Cash generated by operations before capital spending.
CapEx
$31.9M
Capital spending and related asset purchases.
FCF margin
1.8%
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 | $6.2B | $519.4M | $38.4M | $481.0M | 7.8% |
| 2024-09-30 | $6.0B | $684.8M | $56.6M | $628.2M | 10.5% |
| 2024-12-31 | $6.0B | $13.8M | $27.0M | -$13.2M | -0.2% |
| 2025-03-31 | $5.8B | $133.3M | $31.9M | $101.5M | 1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 53.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.0B | 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 Recovery
Operating cash flow increased substantially from the prior quarter, turning free cash flow positive. This was the strongest observable driver of the quarter's cash conversion improvement.
The sequential swing in operating cash flow was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than both the prior quarter and the year-ago quarter. Operating cash flow improved significantly from the prior quarter but was much lower than a year ago, resulting in a free cash flow margin that turned positive from negative sequentially but remained well below the year-ago margin.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow. Versus the same quarter last year, free cash flow was substantially lower, reflecting a much weaker operating cash flow despite similar capital expenditure.
Monitor whether operating cash flow can sustain its sequential improvement or revert toward the lower level seen in the prior quarter.