Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Invesco's free cash flow turned strongly positive this quarter after a negative prior quarter, driven by a significant improvement in operating cash flow. The free cash flow margin also improved compared to the same quarter last year, and the company noted its liquidity resources include a recently expanded revolving credit facility and cash balances.
- With revenue stable, operating cash flow increased markedly, leading to a higher free cash flow and margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, free cash flow and margin improved from negative to positive. Compared to the same quarter last year, free cash flow and margin were higher, while revenue was consistent.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$530.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$547.9M
Cash generated by operations before capital spending.
CapEx
$17.5M
Capital spending and related asset purchases.
FCF margin
35.0%
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 | $1.5B | $438.4M | $28.4M | $410.0M | 27.1% |
| 2024-12-31 | $1.6B | $316.9M | $7.0M | $309.9M | 19.5% |
| 2025-03-31 | $1.5B | -$84.6M | $23.4M | -$108.0M | -7.1% |
| 2025-06-30 | $1.5B | $547.9M | $17.5M | $530.4M | 35.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 268.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$961.2M | 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 Recovery
Operating cash flow swung from negative in the prior quarter to positive, and was higher than the year-ago quarter, driving the improvement in free cash flow.
The strong operating cash flow directly enabled the positive free cash flow and margin improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue stable, operating cash flow increased markedly, leading to a higher free cash flow and margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, free cash flow and margin improved from negative to positive. Compared to the same quarter last year, free cash flow and margin were higher, while revenue was consistent.
Monitor whether operating cash flow can sustain its positive level after the prior quarter's negative figure.