Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, leading to a substantial increase in free cash flow. Free cash flow margin strengthened from the previous quarter but was slightly lower than the same quarter last year.
- Operating cash flow rose while capital expenditure declined, resulting in a higher free cash flow. The free cash flow margin increased accordingly.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was slightly higher, but capital expenditure was higher, leaving free cash flow similar and the margin slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$344.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$446.0M
Cash generated by operations before capital spending.
CapEx
$102.0M
Capital spending and related asset purchases.
FCF margin
16.8%
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 | $1.8B | $244.0M | $82.0M | $162.0M | 8.8% |
| 2024-12-31 | $1.9B | $480.0M | $102.0M | $378.0M | 20.0% |
| 2025-03-31 | $1.9B | $253.0M | $119.0M | $134.0M | 6.9% |
| 2025-06-30 | $2.1B | $446.0M | $102.0M | $344.0M | 16.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.7B | 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 Growth
Operating cash flow increased significantly from the prior quarter, more than offsetting the lower capital expenditure and driving free cash flow substantially higher.
This improvement in operating cash flow was the primary driver of the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure declined, resulting in a higher free cash flow. The free cash flow margin increased accordingly.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was slightly higher, but capital expenditure was higher, leaving free cash flow similar and the margin slightly lower.
Working capital changes, particularly in receivables and payables, as highlighted in the filing, are a factor to monitor for future cash conversion.