Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow decreased sequentially while revenue increased, leading to a lower free cash flow margin. Compared with the same quarter a year earlier, revenue was stable and cash conversion weakened modestly.
- Revenue expanded from the prior quarter, but operating cash flow contracted more sharply, causing free cash flow and its margin to decline. Capital expenditure rose moderately, further reducing free cash flow conversion.
- Compared with the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow and free cash flow both decreased, resulting in a lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$329.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$359.1M
Cash generated by operations before capital spending.
CapEx
$29.3M
Capital spending and related asset purchases.
FCF margin
18.5%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $1.7B | $487.2M | $26.3M | $460.9M | 27.0% |
| 2024-12-31 | $1.8B | $550.0M | $51.7M | $498.3M | 28.3% |
| 2025-03-31 | $1.7B | $417.5M | $23.1M | $394.5M | 22.8% |
| 2025-06-30 | $1.8B | $359.1M | $29.3M | $329.8M | 18.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakened operating cash flow
The largest observable shift was the drop in operating cash flow from the prior quarter, despite higher revenue, which drove the decline in free cash flow and margin. The filing context notes higher working capital investments contributed to reduced operating cash flow in the first half of the year.
This driver directly lowered free cash flow and margin compared with both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue expanded from the prior quarter, but operating cash flow contracted more sharply, causing free cash flow and its margin to decline. Capital expenditure rose moderately, further reducing free cash flow conversion.
Compared with the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow and free cash flow both decreased, resulting in a lower margin.
The decline in operating cash flow relative to revenue growth is a point to monitor in upcoming quarters.