Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin also strengthened, reflecting better cash conversion.
- Revenue increased, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure remained modest, supporting the conversion of revenue into free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin improving. Versus the same quarter last year, all metrics were higher, and the free cash flow margin strengthened notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$635.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$658.0M
Cash generated by operations before capital spending.
CapEx
$23.0M
Capital spending and related asset purchases.
FCF margin
20.2%
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 | $2.9B | $664.0M | $17.0M | $647.0M | 22.6% |
| 2024-12-31 | $2.8B | $582.0M | $48.0M | $534.0M | 19.2% |
| 2025-03-31 | $2.7B | $452.0M | $19.0M | $433.0M | 16.1% |
| 2025-06-30 | $3.1B | $658.0M | $23.0M | $635.0M | 20.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 Growth
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the strongest observable driver of the free cash flow improvement.
Higher operating cash flow directly boosted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure remained modest, supporting the conversion of revenue into free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin improving. Versus the same quarter last year, all metrics were higher, and the free cash flow margin strengthened notably.
Monitor the trend in capital expenditure, as it increased slightly from both the prior quarter and the year-ago quarter.