Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from the prior quarter, matching the year-ago margin. Operating cash flow improved while capital expenditure declined sequentially.
- Revenue was stable quarter over quarter, while operating cash flow rose sharply, more than offsetting a lower capital expenditure, resulting in positive free cash flow. The free cash flow margin recovered to a level similar to the same quarter last year.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital spending. Versus the same quarter last year, free cash flow was slightly lower despite a modest increase in operating cash flow, as capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$565.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$146.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$241.0M
Cash generated by operations before capital spending.
CapEx
$95.0M
Capital spending and related asset purchases.
FCF margin
5.3%
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 | $345.0M | $103.0M | $242.0M | 8.3% |
| 2024-12-31 | $2.8B | $389.0M | $160.0M | $229.0M | 8.3% |
| 2025-03-31 | $2.8B | $127.0M | $179.0M | -$52.0M | -1.8% |
| 2025-06-30 | $2.8B | $241.0M | $95.0M | $146.0M | 5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 23.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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 Recovery
Operating cash flow increased significantly from the prior quarter, turning free cash flow positive. This was the most observable change among the key metrics, as revenue remained stable.
The improvement in operating cash flow was the primary factor behind the sequential free cash flow recovery.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable quarter over quarter, while operating cash flow rose sharply, more than offsetting a lower capital expenditure, resulting in positive free cash flow. The free cash flow margin recovered to a level similar to the same quarter last year.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital spending. Versus the same quarter last year, free cash flow was slightly lower despite a modest increase in operating cash flow, as capital expenditure was higher.
Monitor the trend in capital expenditure, which rose from the year-ago period and may pressure free cash flow if operating cash flow does not continue to improve.