Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved to a positive level from a negative position a year ago, though it declined from the prior quarter. Operating cash flow was lower sequentially but significantly higher year-over-year, while revenue rose both quarter over quarter and year over year.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin was positive for the quarter, reflecting a lower proportion of revenue consumed by capital spending compared to the prior quarter and the year-ago period.
- Revenue and free cash flow were higher than the year-ago quarter, with free cash flow turning positive versus a negative result one year earlier. Sequentially, revenue increased while operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin compared to the prior quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$692.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$549.6M
Capital spending and related asset purchases.
FCF margin
27.1%
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 | $1.3B | $593.0M | $569.5M | $23.5M | 1.8% |
| 2024-12-31 | $1.6B | $756.3M | $591.6M | $164.7M | 10.1% |
| 2025-03-31 | $1.7B | $1.7B | $499.6M | $1.2B | 71.4% |
| 2025-06-30 | $2.6B | $1.2B | $549.6M | $692.1M | 27.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow improvement
Free cash flow moved from negative to positive compared to the same quarter last year, driven by a substantial increase in operating cash flow that more than offset a slightly lower capital expenditure.
This conversion pattern represents a strengthened ability to generate surplus cash after investing in long-term assets relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin was positive for the quarter, reflecting a lower proportion of revenue consumed by capital spending compared to the prior quarter and the year-ago period.
Revenue and free cash flow were higher than the year-ago quarter, with free cash flow turning positive versus a negative result one year earlier. Sequentially, revenue increased while operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin compared to the prior quarter.
Monitor the trend in operating cash flow given its sequential decline despite higher revenue.