Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially despite stable revenue, as operating cash flow fell sharply. Compared to the same quarter last year, both revenue and free cash flow margin improved.
- Revenue was unchanged from the prior quarter, but operating cash flow declined significantly, reducing free cash flow and margin. Capital expenditure increased slightly, yet the primary driver of the cash conversion drop was the lower operating cash flow.
- Compared to the prior quarter, free cash flow and margin weakened due to lower operating cash flow. Versus the same quarter a year ago, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$810.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$163.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$179.2M
Cash generated by operations before capital spending.
CapEx
$15.9M
Capital spending and related asset purchases.
FCF margin
6.2%
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 | $3.0B | $90.0M | $12.3M | $77.7M | 2.6% |
| 2024-12-31 | $3.0B | $249.7M | $10.1M | $239.7M | 8.1% |
| 2025-03-31 | $2.7B | $342.6M | $13.2M | $329.5M | 12.4% |
| 2025-06-30 | $2.7B | $179.2M | $15.9M | $163.3M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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 Decline
Operating cash flow dropped from the prior quarter even though revenue was unchanged, resulting in a significantly lower free cash flow margin. The filing notes forward-looking statements about tariffs and global trade volumes, which may affect future cash flows.
This decline reduced free cash flow generation and margin, marking a notable weakening in cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow declined significantly, reducing free cash flow and margin. Capital expenditure increased slightly, yet the primary driver of the cash conversion drop was the lower operating cash flow.
Compared to the prior quarter, free cash flow and margin weakened due to lower operating cash flow. Versus the same quarter a year ago, revenue, operating cash flow, free cash flow, and margin all improved.
The stability of operating cash flow, given its sharp sequential decline while revenue remained flat, should be monitored in coming quarters.