Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved year-over-year due to higher revenue and operating cash flow, despite a sequential decline from the prior quarter. The free cash flow margin weakened compared to the preceding quarter but strengthened significantly versus the same quarter last year.
- Revenue increased both sequentially and year-over-year. Operating cash flow was lower than the previous quarter but substantially higher than a year ago. Capital expenditure rose both sequentially and year-over-year. Free cash flow and free cash flow margin followed the same pattern as operating cash flow.
- Compared to the immediate preceding quarter, free cash flow and free cash flow margin were lower, driven by a reduction in operating cash flow despite higher revenue. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, supported by stronger operating cash flow and revenue growth.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$333.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$377.6M
Cash generated by operations before capital spending.
CapEx
$44.1M
Capital spending and related asset purchases.
FCF margin
26.1%
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 | $410.0M | $26.5M | $383.5M | 31.5% |
| 2024-12-31 | $1.4B | $441.4M | $37.2M | $404.2M | 29.8% |
| 2025-03-31 | $1.2B | $487.0M | $23.1M | $464.0M | 37.3% |
| 2025-06-30 | $1.3B | $377.6M | $44.1M | $333.5M | 26.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 208.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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 Strength
The year-over-year improvement in free cash flow was most strongly driven by the increase in operating cash flow, which rose substantially from the same quarter last year. Revenue growth provided additional support.
This driver contributed to higher free cash flow and free cash flow margin compared to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased both sequentially and year-over-year. Operating cash flow was lower than the previous quarter but substantially higher than a year ago. Capital expenditure rose both sequentially and year-over-year. Free cash flow and free cash flow margin followed the same pattern as operating cash flow.
Compared to the immediate preceding quarter, free cash flow and free cash flow margin were lower, driven by a reduction in operating cash flow despite higher revenue. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, supported by stronger operating cash flow and revenue growth.
Monitor capital expenditure trajectory, as it increased both sequentially and year-over-year.