Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from both the prior quarter and the year-ago quarter, despite revenue growth. The free cash flow margin weakened, as operating cash flow did not increase proportionally with revenue.
- Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower, resulting in a lower free cash flow margin of 13.7%, compared to 20.8% in the prior quarter and 21.4% a year ago. Capital expenditure was slightly higher than both comparison periods, further reducing free cash flow.
- Compared to the immediately preceding quarter, free cash flow and operating cash flow were lower, while revenue and capital expenditure were higher. Versus the same quarter one year earlier, free cash flow and operating cash flow were also lower, revenue was higher, and capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$784.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$151.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$185.7M
Cash generated by operations before capital spending.
CapEx
$34.1M
Capital spending and related asset purchases.
FCF margin
13.7%
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 | $975.5M | $220.1M | $28.1M | $192.0M | 19.7% |
| 2024-12-31 | $954.3M | $262.0M | $29.3M | $232.8M | 24.4% |
| 2025-03-31 | $998.4M | $238.0M | $30.0M | $207.9M | 20.8% |
| 2025-06-30 | $1.1B | $185.7M | $34.1M | $151.6M | 13.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$360.2M | 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 Weakening
The most observable driver is the decline in operating cash flow compared to both the prior quarter and the year-ago quarter, even as revenue grew. This was the primary factor behind the drop in free cash flow.
Lower operating cash flow reduced free cash flow and weakened the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower, resulting in a lower free cash flow margin of 13.7%, compared to 20.8% in the prior quarter and 21.4% a year ago. Capital expenditure was slightly higher than both comparison periods, further reducing free cash flow.
Compared to the immediately preceding quarter, free cash flow and operating cash flow were lower, while revenue and capital expenditure were higher. Versus the same quarter one year earlier, free cash flow and operating cash flow were also lower, revenue was higher, and capital expenditure was slightly higher.
Monitor the trajectory of operating cash flow relative to revenue, as it declined in the current quarter despite higher revenue.