Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow margin improved year over year but decreased sequentially. Operating cash flow was lower than the prior quarter despite higher revenue, weakening cash conversion.
- Revenue rose while operating cash flow fell compared to the immediately preceding quarter, causing free cash flow margin to weaken. Capital expenditure increased, further reducing free cash flow from the robust level of the prior quarter.
- Compared to the same quarter a year earlier, revenue and operating cash flow were higher, and free cash flow margin improved. Versus the prior quarter, operating cash flow and free cash flow were lower despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$925.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$184.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$200.1M
Cash generated by operations before capital spending.
CapEx
$15.2M
Capital spending and related asset purchases.
FCF margin
22.4%
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 | $690.0M | $228.7M | $8.4M | $220.3M | 31.9% |
| 2024-12-31 | $737.7M | $265.2M | $7.8M | $257.5M | 34.9% |
| 2025-03-31 | $761.6M | $271.5M | $8.7M | $262.8M | 34.5% |
| 2025-06-30 | $826.8M | $200.1M | $15.2M | $184.9M | 22.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 6985.4% | 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 Weakened Sequentially
Operating cash flow was lower than the prior quarter even though revenue grew. This was the strongest observable driver behind the drop in free cash flow and margin.
Free cash flow declined compared to the prior quarter due to weaker cash generation from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell compared to the immediately preceding quarter, causing free cash flow margin to weaken. Capital expenditure increased, further reducing free cash flow from the robust level of the prior quarter.
Compared to the same quarter a year earlier, revenue and operating cash flow were higher, and free cash flow margin improved. Versus the prior quarter, operating cash flow and free cash flow were lower despite higher revenue.
Monitor the relationship between operating cash flow and revenue given the sequential decline in conversion efficiency.