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 both the prior quarter and the same quarter last year. Operating cash flow was lower while capital expenditure was higher than a year ago, reducing cash conversion.
- Revenue was stable versus a year earlier, but operating cash flow was lower and capital expenditure was higher, resulting in a lower free cash flow margin. Compared to the prior quarter, revenue was slightly lower while operating cash flow declined more sharply, further compressing the margin.
- Compared to the prior quarter, free cash flow and margin were lower, driven by a notable decline in operating cash flow. Versus the same quarter last year, free cash flow and margin were also lower, as operating cash flow decreased and capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$337.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$515.0M
Cash generated by operations before capital spending.
CapEx
$178.0M
Capital spending and related asset purchases.
FCF margin
15.3%
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 | $2.4B | $502.0M | $132.0M | $370.0M | 15.7% |
| 2024-09-30 | $2.4B | $951.0M | $167.0M | $784.0M | 32.8% |
| 2024-12-31 | $2.3B | $905.0M | $216.0M | $689.0M | 29.7% |
| 2025-03-31 | $2.2B | $515.0M | $178.0M | $337.0M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 was lower than both the immediately preceding quarter and the same quarter one year earlier, despite revenue being relatively stable. This was the strongest observable factor behind the weakened free cash flow.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus a year earlier, but operating cash flow was lower and capital expenditure was higher, resulting in a lower free cash flow margin. Compared to the prior quarter, revenue was slightly lower while operating cash flow declined more sharply, further compressing the margin.
Compared to the prior quarter, free cash flow and margin were lower, driven by a notable decline in operating cash flow. Versus the same quarter last year, free cash flow and margin were also lower, as operating cash flow decreased and capital expenditure increased.
Monitor the trajectory of operating cash flow, which declined from both the prior quarter and the year-ago period.