Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved versus a year ago but weakened from the preceding quarter.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in positive free cash flow. The free cash flow margin, while still high, was lower than the prior quarter due to a proportionally larger increase in revenue relative to operating cash flow.
- Compared to the prior quarter, revenue was higher but free cash flow was lower, leading to a weakened margin. Versus the same quarter last year, all metrics were higher, with free cash flow margin showing notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$18.4M
Capital spending and related asset purchases.
FCF margin
61.5%
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 | $1.6B | $1.0B | $29.8M | $973.2M | 61.4% |
| 2024-12-31 | $1.5B | $1.0B | $26.2M | $991.7M | 65.0% |
| 2025-03-31 | $1.6B | $1.1B | $14.2M | $1.1B | 67.1% |
| 2025-06-30 | $1.7B | $1.1B | $18.4M | $1.0B | 61.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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.
Higher Operating Cash Flow
Operating cash flow increased compared to both the prior quarter and the same quarter last year, providing the primary support for free cash flow generation.
This driver enabled free cash flow to remain positive and exceed capital expenditure requirements.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in positive free cash flow. The free cash flow margin, while still high, was lower than the prior quarter due to a proportionally larger increase in revenue relative to operating cash flow.
Compared to the prior quarter, revenue was higher but free cash flow was lower, leading to a weakened margin. Versus the same quarter last year, all metrics were higher, with free cash flow margin showing notable improvement.
Monitor the relationship between revenue growth and operating cash flow growth, as the current quarter showed a divergence that compressed the free cash flow margin.