Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but weakened compared to the same quarter last year. The cash conversion rate was lower than the year-ago period despite higher revenue.
- Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow increased from the prior quarter but was lower than the year-ago period, leading to a free cash flow margin that improved sequentially but declined year over year.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter last year, operating cash flow and free cash flow were lower, and capital expenditure was also lower.
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
$361.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$510.0M
Cash generated by operations before capital spending.
CapEx
$149.0M
Capital spending and related asset purchases.
FCF margin
6.9%
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 | $4.9B | $499.0M | $173.0M | $326.0M | 6.7% |
| 2024-12-31 | $4.9B | $1.1B | $166.0M | $894.0M | 18.2% |
| 2025-03-31 | $4.8B | $273.0M | $197.0M | $76.0M | 1.6% |
| 2025-06-30 | $5.2B | $510.0M | $149.0M | $361.0M | 6.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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.
Operating cash flow decline
Operating cash flow was lower than the same quarter last year, while revenue was higher. This weakened cash conversion and free cash flow margin compared to the year-ago period.
The lower operating cash flow relative to revenue is the primary factor behind the year-over-year decline in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow increased from the prior quarter but was lower than the year-ago period, leading to a free cash flow margin that improved sequentially but declined year over year.
Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter last year, operating cash flow and free cash flow were lower, and capital expenditure was also lower.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite higher sales.