Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved from the prior quarter, with operating cash flow and free cash flow both higher, while revenue also increased. Compared to the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
- Revenue was higher than the prior quarter, and operating cash flow rose more than proportionally, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure was lower than the prior quarter, supporting the cash conversion.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin was weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$203.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$324.2M
Cash generated by operations before capital spending.
CapEx
$121.1M
Capital spending and related asset purchases.
FCF margin
6.0%
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 | $3.3B | $810.4M | $139.0M | $671.4M | 20.6% |
| 2024-12-31 | $3.3B | $547.6M | $170.7M | $377.0M | 11.4% |
| 2025-03-31 | $3.2B | $180.0M | $143.3M | $36.8M | 1.1% |
| 2025-06-30 | $3.4B | $324.2M | $121.1M | $203.1M | 6.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 Volatility
Operating cash flow was higher than the prior quarter but significantly lower than the same quarter one year earlier, while revenue remained relatively stable across periods. This divergence is the strongest observable driver of the free cash flow change.
The year-over-year decline in operating cash flow was the primary factor behind the lower free cash flow and weaker 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 rose more than proportionally, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure was lower than the prior quarter, supporting the cash conversion.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin was weaker.
Monitor the trend in operating cash flow relative to revenue, as it declined sharply from the year-ago quarter despite stable revenue.