Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, while free cash flow margin strengthened. Versus the same quarter last year, revenue was higher but free cash flow margin was lower.
- Operating cash flow as a proportion of revenue was higher than the prior quarter, contributing to a stronger free cash flow margin. Capital expenditure increased in absolute terms, but the rise in operating cash flow more than offset this, resulting in improved cash conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue was higher, but free cash flow and free cash flow margin were lower, while operating cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$570.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$208.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$303.0M
Cash generated by operations before capital spending.
CapEx
$94.1M
Capital spending and related asset purchases.
FCF margin
18.1%
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 | $994.2M | $199.5M | $111.2M | $88.3M | 8.9% |
| 2024-12-31 | $1.1B | $301.4M | $124.6M | $176.8M | 15.9% |
| 2025-03-31 | $1.0B | $183.8M | $87.0M | $96.8M | 9.3% |
| 2025-06-30 | $1.2B | $303.0M | $94.1M | $208.9M | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.1% | 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 Growth
Operating cash flow increased significantly from the prior quarter, driving a higher free cash flow despite a moderate rise in capital expenditure. This was the strongest observable factor in the quarter's cash conversion improvement.
The increase in operating cash flow was the primary contributor to the quarter's higher free cash flow and improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter, contributing to a stronger free cash flow margin. Capital expenditure increased in absolute terms, but the rise in operating cash flow more than offset this, resulting in improved cash conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue was higher, but free cash flow and free cash flow margin were lower, while operating cash flow was higher.
Monitor the trend in capital expenditure relative to operating cash flow, as a higher capital expenditure level this quarter partially offset the improvement in operating cash flow.