Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive this quarter, driving free cash flow to a level well above the prior quarter and the year-ago quarter. The free cash flow margin improved significantly compared to both periods.
- Revenue was stable relative to the prior quarter and higher than a year ago. Operating cash flow was positive and substantial, resulting in a free cash flow margin that was materially higher than both the preceding quarter and the same quarter last year.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin turned from negative to positive. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$52.6M
Capital spending and related asset purchases.
FCF margin
98.7%
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 | $1.0B | $400.8M | $45.8M | $355.0M | 34.5% |
| 2024-12-31 | $1.0B | $648.7M | $44.1M | $604.6M | 58.4% |
| 2025-03-31 | $1.0B | -$74.2M | $44.8M | -$118.9M | -11.8% |
| 2025-06-30 | $1.1B | $1.1B | $52.6M | $1.1B | 98.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 382.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.9B | 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 Recovery
Operating cash flow shifted from a negative amount in the prior quarter to a positive amount this quarter, which was also higher than the year-ago quarter. This change was the primary factor behind the improvement in free cash flow and margin.
The swing in operating cash flow directly enabled free cash flow to turn positive and reach a level above both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter and higher than a year ago. Operating cash flow was positive and substantial, resulting in a free cash flow margin that was materially higher than both the preceding quarter and the same quarter last year.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin turned from negative to positive. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor whether operating cash flow can sustain its positive level in future quarters, given the prior quarter's negative figure.