Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased but operating cash flow and free cash flow declined compared to both the prior quarter and the same quarter last year. The free cash flow margin weakened as a result.
- Operating cash flow generation did not keep pace with revenue growth, leading to a lower free cash flow margin. Capital expenditure was slightly higher, but the primary factor was the reduction in operating cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was higher. The same pattern held versus the year-ago quarter, with free cash flow margin declining from both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$292.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$443.0M
Cash generated by operations before capital spending.
CapEx
$151.0M
Capital spending and related asset purchases.
FCF margin
7.3%
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 | $3.9B | $721.0M | $150.0M | $571.0M | 14.7% |
| 2024-12-31 | $4.0B | $885.0M | $164.0M | $721.0M | 18.2% |
| 2025-03-31 | $3.8B | $568.0M | $142.0M | $426.0M | 11.1% |
| 2025-06-30 | $4.0B | $443.0M | $151.0M | $292.0M | 7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.5B | 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 Decline
Operating cash flow was lower this quarter compared to both the prior quarter and the same quarter last year, despite higher revenue.
This directly reduced 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.
Operating cash flow generation did not keep pace with revenue growth, leading to a lower free cash flow margin. Capital expenditure was slightly higher, but the primary factor was the reduction in operating cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was higher. The same pattern held versus the year-ago quarter, with free cash flow margin declining from both periods.
Monitor the trend in operating cash flow relative to revenue, as it was the main driver of the decline in free cash flow.