Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive this quarter, driving a substantial free cash flow and a healthy margin. Revenue increased compared to both the prior quarter and the same quarter last year.
- Revenue rose while operating cash flow shifted from negative to positive, resulting in a free cash flow margin that improved markedly from the prior quarter and the year-ago quarter. Capital expenditure was higher than the prior quarter but similar to the year-ago level.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was higher and operating cash flow, free cash flow, and margin also strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$681.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$730.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$823.0M
Cash generated by operations before capital spending.
CapEx
$93.0M
Capital spending and related asset purchases.
FCF margin
23.7%
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 | $2.7B | $213.0M | $77.0M | $136.0M | 4.9% |
| 2024-12-31 | $3.0B | $391.0M | $114.0M | $277.0M | 9.2% |
| 2025-03-31 | $2.7B | -$395.0M | $67.0M | -$462.0M | -16.9% |
| 2025-06-30 | $3.1B | $823.0M | $93.0M | $730.0M | 23.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 480.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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 Reversal
Operating cash flow turned from negative in both the prior quarter and the year-ago quarter to strongly positive this quarter. This shift was the primary factor behind the improvement in free cash flow and margin.
The swing in operating cash flow drove free cash flow from negative to positive and lifted the free cash flow margin significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow shifted from negative to positive, resulting in a free cash flow margin that improved markedly from the prior quarter and the year-ago quarter. Capital expenditure was higher than the prior quarter but similar to the year-ago level.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was higher and operating cash flow, free cash flow, and margin also strengthened.
Monitor whether operating cash flow can sustain its positive level in future quarters.