Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow rose from the prior quarter and the prior year, but the free cash flow margin improved only relative to the prior quarter and weakened from the same quarter one year earlier. The sequential gain in cash generation was driven primarily by a higher operating cash flow, while capital expenditure remained relatively stable.
- Revenue increased from both the prior quarter and the same quarter one year earlier. Operating cash flow followed revenue higher sequentially, but was lower than the same quarter one year earlier. Capital expenditure was slightly higher in both comparisons. Free cash flow consequently improved from the prior quarter but was lower than the same quarter one year earlier, and the free cash flow margin followed the same pattern.
- Compared with the prior quarter, operating cash flow, free cash flow, and the free cash flow margin all improved. Compared with the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$165.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$193.7M
Cash generated by operations before capital spending.
CapEx
$28.0M
Capital spending and related asset purchases.
FCF margin
3.8%
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 | $3.7B | $526.4M | $17.7M | $508.7M | 13.8% |
| 2024-12-31 | $3.8B | $469.5M | $17.7M | $451.8M | 12.0% |
| 2025-03-31 | $3.9B | $108.5M | $26.1M | $82.3M | 2.1% |
| 2025-06-30 | $4.3B | $193.7M | $28.0M | $165.6M | 3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 increased from the prior quarter but declined from the same quarter one year earlier, while revenue continued to grow. This divergence indicates a change in cash conversion efficiency that merits attention.
The decline in operating cash flow versus the prior year drove the weakened free cash flow margin, despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the same quarter one year earlier. Operating cash flow followed revenue higher sequentially, but was lower than the same quarter one year earlier. Capital expenditure was slightly higher in both comparisons. Free cash flow consequently improved from the prior quarter but was lower than the same quarter one year earlier, and the free cash flow margin followed the same pattern.
Compared with the prior quarter, operating cash flow, free cash flow, and the free cash flow margin all improved. Compared with the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
Monitor how the level of capital expenditure evolves relative to the current pace of cash generation, given its mixed effect on free cash flow in the comparisons.