Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened as revenue grew while capital expenditure remained stable.
- Revenue increased compared to both the prior quarter and the year-ago quarter, while operating cash flow rose at a faster pace, leading to higher free cash flow. Capital expenditure was lower than the year-ago level but slightly higher than the prior quarter, supporting improved cash conversion.
- Compared to the prior quarter, free cash flow and free cash flow margin both improved, with operating cash flow higher and capital expenditure moderately higher. Versus the same quarter last year, free cash flow and margin also strengthened, as operating cash flow increased while capital expenditure decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$917.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$238.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$361.1M
Cash generated by operations before capital spending.
CapEx
$122.2M
Capital spending and related asset purchases.
FCF margin
15.5%
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 | $1.4B | $479.5M | $124.0M | $355.5M | 24.7% |
| 2024-12-31 | $1.4B | $324.8M | $118.9M | $205.9M | 14.5% |
| 2025-03-31 | $1.4B | $223.9M | $107.2M | $116.7M | 8.1% |
| 2025-06-30 | $1.5B | $361.1M | $122.2M | $238.9M | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.7B | 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 compared to both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This occurred alongside higher revenue, indicating improved cash generation from operations.
The stronger operating cash flow directly boosted free cash flow and margin, making it the most observable driver of the quarter's performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the year-ago quarter, while operating cash flow rose at a faster pace, leading to higher free cash flow. Capital expenditure was lower than the year-ago level but slightly higher than the prior quarter, supporting improved cash conversion.
Compared to the prior quarter, free cash flow and free cash flow margin both improved, with operating cash flow higher and capital expenditure moderately higher. Versus the same quarter last year, free cash flow and margin also strengthened, as operating cash flow increased while capital expenditure decreased.
Monitor the trend in capital expenditure relative to operating cash flow, as its stability contributed to the current quarter's cash conversion improvement.