Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased while free cash flow decreased compared to both the prior quarter and the same quarter last year. The free cash flow margin weakened versus both periods, driven by higher capital expenditure and a lower proportion of operating cash flow converting to free cash flow.
- Operating cash flow as a percentage of revenue was lower than both the preceding quarter and the year-ago quarter. After deducting capital expenditure, the resulting free cash flow margin was also lower than both comparison periods.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, capital expenditure was lower, and free cash flow was lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$438.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$504.0M
Cash generated by operations before capital spending.
CapEx
$66.0M
Capital spending and related asset purchases.
FCF margin
13.3%
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 | $2.7B | $531.0M | $32.0M | $499.0M | 18.4% |
| 2024-12-31 | $2.9B | $518.0M | $32.0M | $486.0M | 16.9% |
| 2025-03-31 | $3.0B | $635.0M | $74.0M | $561.0M | 18.5% |
| 2025-06-30 | $3.3B | $504.0M | $66.0M | $438.0M | 13.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Free Cash Flow Margin Weakening
The free cash flow margin contracted versus both the prior quarter and the year-ago quarter. Revenue growth did not translate into proportional growth in free cash flow, as the conversion rate from operating cash flow to free cash flow deteriorated.
A lower free cash flow margin reduces the cushion for discretionary spending and debt service, absent a reversal in coming periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was lower than both the preceding quarter and the year-ago quarter. After deducting capital expenditure, the resulting free cash flow margin was also lower than both comparison periods.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, capital expenditure was lower, and free cash flow was lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
Monitor the trajectory of operating cash flow, which declined sequentially and year-over-year despite higher revenue.