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. However, free cash flow and free cash flow margin weakened significantly from the preceding quarter and were slightly lower than a year ago due to a substantial increase in capital expenditure.
- Cash conversion from revenue to free cash flow weakened sequentially as operating cash flow declined while capital expenditure rose. Year-over-year, operating cash flow improved, but the rise in capital expenditure more than offset that gain, resulting in a lower free cash flow margin.
- Compared to the previous quarter, free cash flow decreased sharply as capital expenditure grew substantially while operating cash flow fell. Versus the same quarter last year, revenue growth supported higher operating cash flow, yet capital expenditure increased to a much greater extent, leading to slightly lower free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$284.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$451.9M
Cash generated by operations before capital spending.
CapEx
$167.8M
Capital spending and related asset purchases.
FCF margin
17.4%
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 | $1.5B | $608.1M | $36.3M | $571.8M | 37.9% |
| 2024-12-31 | $1.7B | $477.6M | $97.6M | $380.0M | 22.9% |
| 2025-03-31 | $1.5B | $863.3M | $66.5M | $796.8M | 51.8% |
| 2025-06-30 | $1.6B | $451.9M | $167.8M | $284.1M | 17.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 64.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure in the current quarter was significantly higher than both the immediately preceding quarter and the same quarter one year earlier, which was the primary observable factor behind the decline in free cash flow.
If capital expenditure remains elevated, free cash flow margins may continue to be pressured.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue to free cash flow weakened sequentially as operating cash flow declined while capital expenditure rose. Year-over-year, operating cash flow improved, but the rise in capital expenditure more than offset that gain, resulting in a lower free cash flow margin.
Compared to the previous quarter, free cash flow decreased sharply as capital expenditure grew substantially while operating cash flow fell. Versus the same quarter last year, revenue growth supported higher operating cash flow, yet capital expenditure increased to a much greater extent, leading to slightly lower free cash flow.
Monitor the trend in capital expenditure levels, as the current quarter's spending was substantially higher than both the prior period and the year-ago period.