Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the year-ago quarter, and operating cash flow improved sequentially. However, a substantial rise in capital expenditure weakened cash conversion, resulting in lower free cash flow and a narrower free cash flow margin compared to both periods.
- Operating cash flow improved sequentially with higher revenue, but capital expenditure consumed a larger portion, reducing free cash flow. The free cash flow margin was lower than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue and operating cash flow were higher, but free cash flow and margin were lower due to significantly higher capital spending. Versus the same quarter last year, revenue rose while operating cash flow declined, and capital expenditure increased markedly, leading to weaker free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$511.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$14.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$72.2M
Cash generated by operations before capital spending.
CapEx
$57.7M
Capital spending and related asset purchases.
FCF margin
1.4%
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 | $1.2B | $212.3M | $28.6M | $183.7M | 15.6% |
| 2024-12-31 | $1.2B | $339.5M | $53.3M | $286.1M | 23.2% |
| 2025-03-31 | $942.1M | $58.2M | $30.9M | $27.2M | 2.9% |
| 2025-06-30 | $1.1B | $72.2M | $57.7M | $14.5M | 1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 19.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.1B | 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
The most notable observable driver was the large increase in capital expenditure compared to both the prior quarter and the year-ago quarter. This spending outpaced the improvement in operating cash flow, leading to a decline in free cash flow and margin.
The higher capital expenditure weakened cash conversion and reduced free cash flow available without a corresponding increase in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved sequentially with higher revenue, but capital expenditure consumed a larger portion, reducing free cash flow. The free cash flow margin was lower than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue and operating cash flow were higher, but free cash flow and margin were lower due to significantly higher capital spending. Versus the same quarter last year, revenue rose while operating cash flow declined, and capital expenditure increased markedly, leading to weaker free cash flow and margin.
Monitor the trajectory of capital expenditure in the coming quarters relative to operating cash flow, as elevated spending has compressed free cash flow.