Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially as operating cash flow increased despite lower revenue, leading to higher free cash flow and margin. Compared to the same quarter one year earlier, free cash flow and margin were lower due to lower operating cash flow despite higher revenue.
- The current quarter's free cash flow was supported by operating cash flow that exceeded capital expenditure, resulting in a conversion rate that improved from the prior quarter but was lower than the year-ago period.
- Sequentially, operating cash flow, free cash flow, and margin all improved, while revenue was lower. Year-over-year, revenue was higher but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$310.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$325.0M
Cash generated by operations before capital spending.
CapEx
$15.0M
Capital spending and related asset purchases.
FCF margin
24.1%
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 | $1.2B | $440.0M | $23.0M | $417.0M | 35.2% |
| 2024-12-31 | $1.2B | $361.0M | $20.0M | $341.0M | 28.8% |
| 2025-03-31 | $1.4B | $213.0M | $17.0M | $196.0M | 14.0% |
| 2025-06-30 | $1.3B | $325.0M | $15.0M | $310.0M | 24.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow was higher than the prior quarter, while revenue was lower, leading to a higher free cash flow margin.
The sequential rise in operating cash flow was the primary factor behind the increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The current quarter's free cash flow was supported by operating cash flow that exceeded capital expenditure, resulting in a conversion rate that improved from the prior quarter but was lower than the year-ago period.
Sequentially, operating cash flow, free cash flow, and margin all improved, while revenue was lower. Year-over-year, revenue was higher but operating cash flow, free cash flow, and margin were lower.
Monitor the trajectory of operating cash flow, which declined year-over-year despite higher revenue.