Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, free cash flow and free cash flow margin declined, as operating cash flow did not keep pace with capital expenditure growth.
- Operating cash flow rose from the prior quarter but fell from a year ago. Capital expenditure increased from both periods, resulting in lower free cash flow and a weakened margin.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but capital expenditure increased more, leading to lower free cash flow and margin. Versus the same quarter one year earlier, revenue was higher while operating cash flow was lower, and capital expenditure was slightly lower, yet free cash flow and margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$761.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$219.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$294.0M
Cash generated by operations before capital spending.
CapEx
$75.0M
Capital spending and related asset purchases.
FCF margin
11.0%
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 | $1.8B | $221.0M | $39.0M | $182.0M | 10.3% |
| 2024-12-31 | $1.7B | $180.0M | $53.0M | $127.0M | 7.5% |
| 2025-03-31 | $1.7B | $286.0M | $53.0M | $233.0M | 14.0% |
| 2025-06-30 | $2.0B | $294.0M | $75.0M | $219.0M | 11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | 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 Growth
Capital expenditure increased from both the prior quarter and the year-ago quarter, while operating cash flow did not increase proportionally.
This contributed to the decline in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose from the prior quarter but fell from a year ago. Capital expenditure increased from both periods, resulting in lower free cash flow and a weakened margin.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but capital expenditure increased more, leading to lower free cash flow and margin. Versus the same quarter one year earlier, revenue was higher while operating cash flow was lower, and capital expenditure was slightly lower, yet free cash flow and margin declined.
Monitor the relationship between capital expenditure and operating cash flow, as the gap widened this quarter.