Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved in the current quarter compared to both the prior quarter and the same quarter last year. The improvement was driven by higher operating cash flow, while capital expenditure remained relatively stable.
- Revenue increased sequentially and year-over-year, while operating cash flow rose more sharply, resulting in a higher free cash flow margin. Capital expenditure was little changed, so the conversion of revenue into free cash flow strengthened.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter one year earlier, the current quarter also showed higher revenue, operating cash flow, free cash flow, and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$587.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$146.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$161.7M
Cash generated by operations before capital spending.
CapEx
$14.8M
Capital spending and related asset purchases.
FCF margin
17.0%
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 | $798.2M | $205.3M | $13.7M | $191.6M | 24.0% |
| 2024-12-31 | $862.9M | $172.6M | $15.5M | $157.1M | 18.2% |
| 2025-03-31 | $814.3M | $105.7M | $14.3M | $91.4M | 11.2% |
| 2025-06-30 | $865.4M | $161.7M | $14.8M | $146.9M | 17.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Operating Cash Flow
Operating cash flow rose significantly from both the prior quarter and the year-ago period, providing the primary lift to free cash flow. Revenue growth supported this increase, while capital expenditure remained nearly flat.
Free cash flow and free cash flow margin both improved as a result of the stronger cash generation from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased sequentially and year-over-year, while operating cash flow rose more sharply, resulting in a higher free cash flow margin. Capital expenditure was little changed, so the conversion of revenue into free cash flow strengthened.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter one year earlier, the current quarter also showed higher revenue, operating cash flow, free cash flow, and margin.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.