Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved relative to both the prior quarter and the same quarter last year, but free cash flow and margin weakened sharply. The decline was driven by lower operating cash flow and higher capital expenditure.
- Revenue increased while operating cash flow declined, and capital expenditure rose, resulting in free cash flow that was much lower than in the prior quarter and the year-ago period. The free cash flow margin narrowed substantially as a result.
- Compared to the preceding quarter, revenue was higher but both operating cash flow and free cash flow were lower, with capital expenditure higher. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were all lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$202.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$377.0M
Cash generated by operations before capital spending.
CapEx
$175.0M
Capital spending and related asset purchases.
FCF margin
4.4%
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 | $4.4B | $611.0M | $88.0M | $523.0M | 11.9% |
| 2024-12-31 | $4.2B | $428.0M | $258.0M | $170.0M | 4.0% |
| 2025-03-31 | $4.3B | $646.0M | $125.0M | $521.0M | 12.1% |
| 2025-06-30 | $4.6B | $377.0M | $175.0M | $202.0M | 4.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | 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 Weakness
Operating cash flow declined notably from both the prior quarter and the year-ago period, despite higher revenue. This was the primary factor behind the significant drop in free cash flow.
Lower operating cash flow reduced the cash available for capital investment and shareholder returns, weakening overall cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow declined, and capital expenditure rose, resulting in free cash flow that was much lower than in the prior quarter and the year-ago period. The free cash flow margin narrowed substantially as a result.
Compared to the preceding quarter, revenue was higher but both operating cash flow and free cash flow were lower, with capital expenditure higher. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were all lower, and capital expenditure was higher.
Monitor the trend in capital expenditure relative to operating cash flow, as increased investment outlays may continue to pressure free cash flow conversion.