Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and the year-ago quarter, but operating cash flow and free cash flow declined significantly compared to both periods. The free cash flow margin weakened, reflecting a lower proportion of revenue converted to free cash flow.
- Revenue rose from both the prior quarter and the year-ago quarter, yet operating cash flow fell sharply, resulting in a lower free cash flow margin. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter, which contributed to the reduced cash conversion.
- Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the year-ago quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were substantially lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$134.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$160.9M
Cash generated by operations before capital spending.
CapEx
$26.6M
Capital spending and related asset purchases.
FCF margin
5.1%
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 | $2.5B | $935.6M | $35.0M | $900.6M | 36.5% |
| 2024-12-31 | $2.5B | $760.9M | $39.3M | $721.6M | 29.4% |
| 2025-03-31 | $2.4B | $259.3M | $37.1M | $222.2M | 9.1% |
| 2025-06-30 | $2.6B | $160.9M | $26.6M | $134.3M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 21.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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
Revenue increased from both the prior quarter and the year-ago quarter, yet operating cash flow fell significantly. The filing context notes that higher worldwide tax payments in the current year contributed to the year-over-year reduction in net cash flow from operations.
The decline in operating cash flow was the primary factor behind the lower free cash flow and weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from both the prior quarter and the year-ago quarter, yet operating cash flow fell sharply, resulting in a lower free cash flow margin. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter, which contributed to the reduced cash conversion.
Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the year-ago quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were substantially lower.
Monitor the trajectory of operating cash flow, which declined from both the prior quarter and the year-ago quarter despite higher revenue.