Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the preceding quarter and the same quarter one year earlier. Free cash flow improved sequentially but weakened compared to the year-ago period, reflecting a mixed performance in cash generation.
- Despite lower revenue, operating cash flow increased substantially from the preceding quarter, leading to a higher free cash flow margin. Capital expenditure also rose, but the improvement in operating cash flow more than offset the increase, driving sequential cash conversion improvement.
- Compared to the preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all higher, while revenue was lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower, with capital expenditure slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$670.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$394.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$601.0M
Cash generated by operations before capital spending.
CapEx
$207.0M
Capital spending and related asset purchases.
FCF margin
11.6%
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 | $3.4B | -$670.0M | $141.0M | -$811.0M | -24.1% |
| 2024-12-31 | $4.0B | $1.1B | $132.0M | $925.0M | 23.1% |
| 2025-03-31 | $3.5B | $284.0M | $122.0M | $162.0M | 4.6% |
| 2025-06-30 | $3.4B | $601.0M | $207.0M | $394.0M | 11.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -72.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | 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 Improvement
Operating cash flow was the strongest observable driver this quarter, rising sharply from the preceding quarter but remaining below the level of the same quarter one year earlier. This sequential recovery was the primary factor behind the higher free cash flow.
The sequential improvement in operating cash flow supported free cash flow growth, but the year-over-year decline underscores the importance of sustained cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite lower revenue, operating cash flow increased substantially from the preceding quarter, leading to a higher free cash flow margin. Capital expenditure also rose, but the improvement in operating cash flow more than offset the increase, driving sequential cash conversion improvement.
Compared to the preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all higher, while revenue was lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower, with capital expenditure slightly lower.
Monitor the trend in cash and cash equivalents, which decreased from the prior year end according to the filing.