Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned strongly positive from a negative position in the prior quarter and improved significantly from the same quarter last year, driven by a large increase in operating cash flow. Capital expenditure remained low, contributing to a high free cash flow margin.
- Revenue was stable compared to both prior periods. Operating cash flow surged to a positive level, while capital expenditure decreased, resulting in free cash flow that was substantially higher than the previous quarter and the year-ago quarter. The free cash flow margin improved markedly.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow shifted from negative to positive, and free cash flow margin improved from negative to positive. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin all increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$14.0M
Capital spending and related asset purchases.
FCF margin
61.4%
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 | $2.2B | $558.2M | $69.8M | $488.4M | 22.1% |
| 2024-12-31 | $2.3B | -$145.2M | $71.8M | -$217.0M | -9.6% |
| 2025-03-31 | $2.1B | -$50.1M | $37.5M | -$87.6M | -4.1% |
| 2025-06-30 | $2.1B | $1.3B | $14.0M | $1.3B | 61.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1373.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 surge
Operating cash flow rose sharply from the prior quarter and year-ago quarter, supported by higher net income adjusted for non-cash items and an increase in accounts payable and accrued expenses, according to the filing.
This drove free cash flow to its highest level in the periods presented.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to both prior periods. Operating cash flow surged to a positive level, while capital expenditure decreased, resulting in free cash flow that was substantially higher than the previous quarter and the year-ago quarter. The free cash flow margin improved markedly.
Compared to the immediately preceding quarter, operating cash flow and free cash flow shifted from negative to positive, and free cash flow margin improved from negative to positive. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin all increased.
Monitor the sustainability of operating cash flow, given the filing context notes that the increase was partially offset by higher incentive compensation and income tax payments.