Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter delivered strong cash generation with a high free cash flow margin. Revenue increased from both the prior quarter and the same quarter last year, while operating cash flow and free cash flow showed notable improvement.
- Revenue supported a high conversion rate into operating cash flow, with minimal capital expenditure resulting in a strong free cash flow margin.
- Compared with the prior quarter, operating cash flow and free cash flow improved substantially, lifting the free cash flow margin significantly. Relative to the same quarter one year ago, both cash flow metrics were higher and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$775.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$284.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$286.2M
Cash generated by operations before capital spending.
CapEx
$1.8M
Capital spending and related asset purchases.
FCF margin
53.0%
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 | $453.8M | $226.5M | $1.8M | $224.7M | 49.5% |
| 2024-12-31 | $440.0M | $194.0M | $841000 | $193.2M | 43.9% |
| 2025-03-31 | $498.7M | $74.9M | $2.1M | $72.8M | 14.6% |
| 2025-06-30 | $536.4M | $286.2M | $1.8M | $284.4M | 53.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 156.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.6B | 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 Surge
Operating cash flow increased sharply from the prior quarter and also exceeded the year-ago level, driving free cash flow higher. The cash conversion efficiency improved markedly.
The strong operating cash flow was the primary factor behind the quarter's high free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue supported a high conversion rate into operating cash flow, with minimal capital expenditure resulting in a strong free cash flow margin.
Compared with the prior quarter, operating cash flow and free cash flow improved substantially, lifting the free cash flow margin significantly. Relative to the same quarter one year ago, both cash flow metrics were higher and the margin strengthened.
Monitor the sustainability of operating cash flow given the large sequential increase.