Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved significantly from the prior quarter, but declined compared to the same quarter last year. The free cash flow margin strengthened sequentially, reflecting better cash conversion.
- Revenue was stable compared to the prior year, while operating cash flow decreased. Capital expenditure was lower, resulting in a lower free cash flow and margin year over year. Sequentially, higher operating cash flow and lower capital expenditure drove a much higher free cash flow and margin.
- Compared to the immediately preceding quarter, all cash flow metrics improved: operating cash flow, free cash flow, and margin are higher. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin are lower, despite similar revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$776.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$884.0M
Cash generated by operations before capital spending.
CapEx
$108.0M
Capital spending and related asset purchases.
FCF margin
15.2%
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 | $5.0B | $1.2B | $134.0M | $1.0B | 20.5% |
| 2024-12-31 | $4.9B | $1.3B | $184.0M | $1.1B | 21.9% |
| 2025-03-31 | $4.9B | $600.0M | $124.0M | $476.0M | 9.7% |
| 2025-06-30 | $5.1B | $884.0M | $108.0M | $776.0M | 15.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 Rebound
Operating cash flow rose sharply from the preceding quarter, outpacing the increase in revenue. This drove the sequential improvement in free cash flow.
The higher operating cash flow was the primary factor behind the sequential free cash flow margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior year, while operating cash flow decreased. Capital expenditure was lower, resulting in a lower free cash flow and margin year over year. Sequentially, higher operating cash flow and lower capital expenditure drove a much higher free cash flow and margin.
Compared to the immediately preceding quarter, all cash flow metrics improved: operating cash flow, free cash flow, and margin are higher. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin are lower, despite similar revenue.
Monitor working capital changes, as the filing noted that cash flow from operations for the first six months was affected by shifts in working capital.