Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by a substantial increase in operating cash flow. The free cash flow margin widened significantly compared with both periods.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow rose markedly from both comparison periods, and capital expenditure was slightly higher. The combination produced a free cash flow margin that was higher than both the prior quarter and the year-ago quarter.
- Compared with the immediately preceding quarter, revenue was lower while operating cash flow and free cash flow were both substantially higher. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$732.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$796.0M
Cash generated by operations before capital spending.
CapEx
$64.0M
Capital spending and related asset purchases.
FCF margin
17.6%
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 | $3.7B | $1.0B | $62.0M | $951.0M | 25.6% |
| 2024-12-31 | $4.1B | $1.2B | $55.0M | $1.1B | 27.6% |
| 2025-03-31 | $4.7B | $140.0M | $56.0M | $84.0M | 1.8% |
| 2025-06-30 | $4.2B | $796.0M | $64.0M | $732.0M | 17.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.3B | 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 Surge
Operating cash flow was the strongest observable driver, rising sharply from both the prior quarter and the year-ago quarter. This increase was the primary factor behind the improvement in free cash flow and margin.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin to levels well above both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow rose markedly from both comparison periods, and capital expenditure was slightly higher. The combination produced a free cash flow margin that was higher than both the prior quarter and the year-ago quarter.
Compared with the immediately preceding quarter, revenue was lower while operating cash flow and free cash flow were both substantially higher. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.