Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion turned strongly positive in the current quarter, with free cash flow margin rising from negative levels in both the preceding quarter and the same quarter one year earlier. The improvement was driven primarily by a sharp increase in operating cash flow, while capital expenditure remained relatively stable.
- Revenue was slightly lower than the year-ago period but higher than the prior quarter. Operating cash flow shifted from negative to positive, and after capital expenditure, free cash flow also turned positive, yielding a positive free cash flow margin.
- Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Compared with the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow improved substantially from negative to positive, and margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$554.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$785.0M
Cash generated by operations before capital spending.
CapEx
$231.0M
Capital spending and related asset purchases.
FCF margin
6.4%
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 | $8.5B | $640.0M | $259.0M | $381.0M | 4.5% |
| 2024-12-31 | $8.4B | $1.4B | $540.0M | $882.0M | 10.4% |
| 2025-03-31 | $8.2B | -$3.0M | $162.0M | -$165.0M | -2.0% |
| 2025-06-30 | $8.6B | $785.0M | $231.0M | $554.0M | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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 Turnaround
Operating cash flow rebounded from negative levels in both the prior quarter and year-ago quarter to a strong positive figure, driving the improvement in free cash flow.
This was the primary factor behind the positive free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the year-ago period but higher than the prior quarter. Operating cash flow shifted from negative to positive, and after capital expenditure, free cash flow also turned positive, yielding a positive free cash flow margin.
Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Compared with the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow improved substantially from negative to positive, and margin strengthened.
Capital expenditure was higher than the prior quarter but lower than the year-ago quarter; monitor its trend in upcoming quarters.