Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved sharply versus the prior quarter, with free cash flow turning positive. Compared to the same quarter last year, free cash flow was higher, supported by a stronger operating cash flow and lower capital expenditure.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter and was also above the year-ago level, while capital expenditure declined compared to both periods. As a result, free cash flow and free cash flow margin improved markedly from the prior quarter and were higher than the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow turned from negative to positive, driven by a much higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow was higher, with operating cash flow improving and capital expenditure declining.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$542.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$620.6M
Cash generated by operations before capital spending.
CapEx
$77.9M
Capital spending and related asset purchases.
FCF margin
15.4%
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 | $3.3B | $277.3M | $115.8M | $161.5M | 4.9% |
| 2024-12-31 | $3.3B | $777.2M | $112.1M | $665.1M | 20.0% |
| 2025-03-31 | $3.3B | $18.5M | $126.0M | -$107.5M | -3.2% |
| 2025-06-30 | $3.5B | $620.6M | $77.9M | $542.7M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 228.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 substantially from the prior quarter and was also higher than the year-ago quarter, providing the primary support for free cash flow improvement.
The higher operating cash flow was the strongest observable driver of the improved free cash flow this quarter.
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. Operating cash flow rose substantially from the prior quarter and was also above the year-ago level, while capital expenditure declined compared to both periods. As a result, free cash flow and free cash flow margin improved markedly from the prior quarter and were higher than the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow turned from negative to positive, driven by a much higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow was higher, with operating cash flow improving and capital expenditure declining.
Monitor whether operating cash flow can sustain its current level, given the large sequential swing from the prior quarter.