Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved versus the prior quarter, leading to higher free cash flow and a stronger margin. Compared to the same quarter last year, free cash flow and margin were lower despite a rise in revenue.
- Cash conversion strengthened from the preceding quarter, as operating cash flow increased faster than revenue, resulting in a higher free cash flow margin. Capital expenditure remained low relative to operating cash flow.
- Relative to the prior quarter, revenue improved and operating cash flow strengthened, driving higher free cash flow and a better margin. Versus the same quarter a year ago, revenue increased but operating cash flow declined, leading to a lower free cash flow and a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$684.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$699.7M
Cash generated by operations before capital spending.
CapEx
$15.6M
Capital spending and related asset purchases.
FCF margin
33.1%
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 | $1.4B | -$125.5M | $7.9M | -$133.4M | -9.4% |
| 2024-12-31 | $1.6B | $236.7M | $8.8M | $227.9M | 14.3% |
| 2025-03-31 | $1.8B | $360.4M | $11.5M | $348.9M | 19.3% |
| 2025-06-30 | $2.1B | $699.7M | $15.6M | $684.1M | 33.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 182.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.7B | 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 Growth
Operating cash flow increased substantially from the prior quarter, outpacing the rise in revenue and driving a material improvement in free cash flow and margin.
This was the strongest observable driver of the quarter's free cash flow improvement compared to the preceding period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened from the preceding quarter, as operating cash flow increased faster than revenue, resulting in a higher free cash flow margin. Capital expenditure remained low relative to operating cash flow.
Relative to the prior quarter, revenue improved and operating cash flow strengthened, driving higher free cash flow and a better margin. Versus the same quarter a year ago, revenue increased but operating cash flow declined, leading to a lower free cash flow and a weakened margin.
Monitor the trajectory of operating cash flow relative to revenue, as the year-over-year decline in cash conversion efficiency occurred despite higher revenue.