Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter and slightly higher than the same quarter last year. Operating cash flow, free cash flow, and free cash flow margin all improved compared to both periods.
- The company converted a higher portion of revenue into operating cash flow, resulting in a positive free cash flow margin. Capital expenditure was higher than the prior quarter and comparable to the same quarter last year.
- Compared to the preceding quarter, revenue and operating cash flow were higher, while capital expenditure was also higher; free cash flow turned from negative to positive. Compared to the same quarter last year, all metrics were higher, with free cash flow margin improving.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$829.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$947.0M
Cash generated by operations before capital spending.
CapEx
$118.0M
Capital spending and related asset purchases.
FCF margin
12.8%
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 | $2.3B | $130.0M | $154.0M | -$24.0M | -1.0% |
| 2024-12-31 | $4.0B | $4.2B | $181.0M | $4.0B | 100.4% |
| 2025-03-31 | $4.4B | -$2.1B | $94.0M | -$2.2B | -49.9% |
| 2025-06-30 | $6.5B | $947.0M | $118.0M | $829.0M | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Improvement
Operating cash flow was higher than the prior quarter and the same quarter last year, driving a notable increase in free cash flow and margin.
This improvement is the primary factor behind the positive free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher portion of revenue into operating cash flow, resulting in a positive free cash flow margin. Capital expenditure was higher than the prior quarter and comparable to the same quarter last year.
Compared to the preceding quarter, revenue and operating cash flow were higher, while capital expenditure was also higher; free cash flow turned from negative to positive. Compared to the same quarter last year, all metrics were higher, with free cash flow margin improving.
Monitor the trend in operating cash flow relative to revenue, as it is the primary driver of free cash flow.