Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved year over year, while remaining stable sequentially. Free cash flow rose compared to both prior periods, supported by a higher operating cash flow and lower capital spending.
- The company converted a larger share of revenue into free cash flow compared to the same quarter last year, as operating cash flow increased and capital expenditure decreased. The margin was unchanged from the prior quarter.
- Versus the prior quarter, revenue was higher and free cash flow was slightly higher, with margin stable. Versus the year-ago quarter, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$331.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$398.0M
Cash generated by operations before capital spending.
CapEx
$67.0M
Capital spending and related asset purchases.
FCF margin
6.3%
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 | $847.0M | $56.0M | $791.0M | 15.7% |
| 2024-12-31 | $5.1B | $920.0M | $83.0M | $837.0M | 16.5% |
| 2025-03-31 | $5.1B | $400.0M | $77.0M | $323.0M | 6.3% |
| 2025-06-30 | $5.2B | $398.0M | $67.0M | $331.0M | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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.
Year-over-Year Free Cash Flow Growth
The increase in free cash flow from the year-ago period was driven by a higher operating cash flow, partly due to the absence of a prior-year payment as described in the filing, and a lower capital expenditure.
The free cash flow margin strengthened compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a larger share of revenue into free cash flow compared to the same quarter last year, as operating cash flow increased and capital expenditure decreased. The margin was unchanged from the prior quarter.
Versus the prior quarter, revenue was higher and free cash flow was slightly higher, with margin stable. Versus the year-ago quarter, revenue, operating cash flow, free cash flow, and margin all improved.
Monitor the level of capital expenditure and the collection of accounts receivable, as noted in the filing.