Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow rose sequentially but fell relative to the prior year, while the filing notes that the company's cash, short-term investments, and undrawn credit facility are considered sufficient for its working capital and capital expenditure needs.
- Operating cash flow grew sequentially but declined year over year, while capital expenditure decreased in both comparisons. The resulting free cash flow improvement from the prior quarter was offset by a weaker margin compared to the same period a year ago.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow increased with a slightly lower margin. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were lower, and the free cash flow margin narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$587.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$240.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$290.2M
Cash generated by operations before capital spending.
CapEx
$49.3M
Capital spending and related asset purchases.
FCF margin
15.7%
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 | $351.8M | $51.9M | $299.9M | 22.1% |
| 2024-12-31 | $1.4B | -$127.5M | $49.8M | -$177.3M | -12.8% |
| 2025-03-31 | $1.4B | $280.4M | $56.0M | $224.4M | 15.9% |
| 2025-06-30 | $1.5B | $290.2M | $49.3M | $240.9M | 15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Free cash flow margin
The free cash flow margin decreased compared to the same quarter last year, despite higher revenue and lower capital expenditure, indicating that operating cash flow did not keep pace with revenue growth.
Sustaining or improving the free cash flow margin will be important for cash generation going forward.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew sequentially but declined year over year, while capital expenditure decreased in both comparisons. The resulting free cash flow improvement from the prior quarter was offset by a weaker margin compared to the same period a year ago.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow increased with a slightly lower margin. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were lower, and the free cash flow margin narrowed.
Monitor the trajectory of the free cash flow margin relative to revenue growth, as it weakened year over year despite higher revenue and lower capital expenditure.