Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to both the prior quarter and the same quarter last year, driven by higher capital expenditure. The free cash flow margin weakened as revenue growth was outpaced by the increase in capital spending.
- Revenue increased from the prior quarter and the year-ago quarter, while operating cash flow was higher than a year ago but slightly lower than the prior quarter. Capital expenditure rose significantly compared to both periods, resulting in free cash flow that was lower than both comparable quarters and a free cash flow margin that weakened.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, as a modest revenue increase was more than offset by a substantial rise in capital expenditure. Versus the same quarter last year, free cash flow and margin also declined, despite higher revenue and operating cash flow, due to a much larger capital expenditure outlay.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$318.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$563.0M
Cash generated by operations before capital spending.
CapEx
$245.0M
Capital spending and related asset purchases.
FCF margin
16.8%
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 | $931.0M | $139.0M | $792.0M | 57.8% |
| 2024-12-31 | $1.5B | $420.0M | $197.0M | $223.0M | 14.6% |
| 2025-03-31 | $1.7B | $586.0M | $132.0M | $454.0M | 27.3% |
| 2025-06-30 | $1.9B | $563.0M | $245.0M | $318.0M | 16.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 64.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.0% | 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.
Capital Expenditure Increase
Capital expenditure rose sharply compared to both the prior quarter and the year-ago quarter, outpacing revenue growth and operating cash flow improvement. This was the strongest observable driver of the decline in free cash flow and free cash flow margin.
Higher capital expenditure absorbed a larger share of operating cash flow, reducing free cash flow and compressing the free cash flow margin.
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 the year-ago quarter, while operating cash flow was higher than a year ago but slightly lower than the prior quarter. Capital expenditure rose significantly compared to both periods, resulting in free cash flow that was lower than both comparable quarters and a free cash flow margin that weakened.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, as a modest revenue increase was more than offset by a substantial rise in capital expenditure. Versus the same quarter last year, free cash flow and margin also declined, despite higher revenue and operating cash flow, due to a much larger capital expenditure outlay.
Monitor the trajectory of capital expenditure, as its increase was the primary factor behind the decline in free cash flow this quarter.