Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow turned positive after a negative prior quarter, supported by improved operating cash flow. While revenue was lower than the same quarter last year, free cash flow and margin were higher.
- Revenue was higher than the prior quarter, and operating cash flow swung from negative to positive, resulting in strong free cash flow generation. The free cash flow margin improved compared to both the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow improved markedly. Versus the same quarter one year earlier, revenue was lower but free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$692.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$738.6M
Cash generated by operations before capital spending.
CapEx
$46.0M
Capital spending and related asset purchases.
FCF margin
7.5%
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 | $10.0B | $2.0B | $32.0M | $1.9B | 19.3% |
| 2024-12-31 | $7.6B | $646.7M | $13.3M | $633.4M | 8.3% |
| 2025-03-31 | $7.7B | -$436.2M | $34.3M | -$470.5M | -6.1% |
| 2025-06-30 | $9.2B | $738.6M | $46.0M | $692.6M | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 Recovery
Operating cash flow turned from a negative amount in the prior quarter to a positive amount this quarter, driving the swing in free cash flow.
This improvement was the primary factor behind the shift from a negative to a positive free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow swung from negative to positive, resulting in strong free cash flow generation. The free cash flow margin improved compared to both the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, operating cash flow and free cash flow improved markedly. Versus the same quarter one year earlier, revenue was lower but free cash flow and margin were higher.
Monitor whether operating cash flow can sustain its positive level given the prior quarter's negative figure.