Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose while capital expenditure remained stable. Compared to the same quarter last year, free cash flow was lower despite higher revenue, driven by a larger increase in operating cash flow relative to capital expenditure.
- Revenue increased from the prior quarter and from a year ago, while operating cash flow grew sequentially but declined year-over-year. Free cash flow margin improved sequentially but weakened compared to the same quarter last year, as capital expenditure was nearly unchanged.
- Compared to the immediately preceding quarter, free cash flow and margin both improved, driven by higher operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow did not keep pace with revenue growth.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$792.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$832.0M
Cash generated by operations before capital spending.
CapEx
$40.0M
Capital spending and related asset purchases.
FCF margin
1523.1%
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 | $54.0M | $699.0M | $38.0M | $661.0M | 1224.1% |
| 2024-12-31 | $49.0M | $877.0M | $52.0M | $825.0M | 1683.7% |
| 2025-03-31 | $50.0M | $641.0M | $40.0M | $601.0M | 1202.0% |
| 2025-06-30 | $52.0M | $832.0M | $40.0M | $792.0M | 1523.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 272.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 76.9% | 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 Growth
Operating cash flow increased sequentially from the prior quarter, which was the primary factor behind the improvement in free cash flow and margin. This occurred even as capital expenditure remained stable.
The sequential rise in operating cash flow directly strengthened free cash flow and margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and from a year ago, while operating cash flow grew sequentially but declined year-over-year. Free cash flow margin improved sequentially but weakened compared to the same quarter last year, as capital expenditure was nearly unchanged.
Compared to the immediately preceding quarter, free cash flow and margin both improved, driven by higher operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow did not keep pace with revenue growth.
Monitor the trend in operating cash flow relative to revenue, as its year-over-year decline despite higher revenue may signal a shift in cash conversion efficiency.