Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher operating cash flow. However, free cash flow decreased from the prior quarter due to lower operating cash flow.
- Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow increased significantly year-over-year but declined sequentially, leading to a free cash flow margin that improved from the prior year but weakened from the previous quarter.
- Compared to the prior quarter, free cash flow was lower as operating cash flow decreased while capital expenditure remained stable. Compared to the same quarter last year, free cash flow was higher, driven by a substantial increase in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$209.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$510.0M
Cash generated by operations before capital spending.
CapEx
$301.0M
Capital spending and related asset purchases.
FCF margin
3.0%
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 | $6.9B | $1.0B | $300.0M | $710.0M | 10.3% |
| 2024-12-31 | $7.4B | $1.2B | $353.0M | $837.0M | 11.4% |
| 2025-03-31 | $6.4B | $709.0M | $300.0M | $409.0M | 6.4% |
| 2025-06-30 | $6.9B | $510.0M | $301.0M | $209.0M | 3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 29.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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.
Year-over-Year Operating Cash Flow Improvement
Operating cash flow was substantially higher compared to the same quarter last year, which was the strongest observable driver of the year-over-year improvement in free cash flow.
This improvement directly supported a higher free cash flow and free cash flow margin compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow increased significantly year-over-year but declined sequentially, leading to a free cash flow margin that improved from the prior year but weakened from the previous quarter.
Compared to the prior quarter, free cash flow was lower as operating cash flow decreased while capital expenditure remained stable. Compared to the same quarter last year, free cash flow was higher, driven by a substantial increase in operating cash flow.
Monitor the trend in operating cash flow, as its sequential decline was the primary factor behind the quarter-over-quarter drop in free cash flow.