Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved both sequentially and versus the prior year quarter, yet free cash flow and its margin weakened. Operating cash flow declined from the year-ago period while capital expenditure increased.
- Operating cash flow was lower than the same quarter last year and slightly below the preceding quarter. With capital expenditure higher than both comparative periods, free cash flow conversion weakened.
- Compared to the preceding quarter, revenue increased but free cash flow margin declined. Relative to the year-ago quarter, revenue also rose while operating cash flow and free cash flow both decreased, and margin narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$488.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$643.0M
Cash generated by operations before capital spending.
CapEx
$155.0M
Capital spending and related asset purchases.
FCF margin
7.2%
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 | $6.3B | $880.0M | $174.0M | $706.0M | 11.3% |
| 2024-12-31 | $6.4B | $318.0M | $342.0M | -$24.0M | -0.4% |
| 2025-03-31 | $6.3B | $647.0M | $135.0M | $512.0M | 8.2% |
| 2025-06-30 | $6.7B | $643.0M | $155.0M | $488.0M | 7.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 64.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $648.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakening Free Cash Flow Margin
Despite higher revenue, free cash flow margin contracted from both the prior quarter and the same period last year, driven by lower operating cash flow relative to revenue and higher capital spending.
Continued margin compression could pressure the company's ability to generate discretionary cash from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the same quarter last year and slightly below the preceding quarter. With capital expenditure higher than both comparative periods, free cash flow conversion weakened.
Compared to the preceding quarter, revenue increased but free cash flow margin declined. Relative to the year-ago quarter, revenue also rose while operating cash flow and free cash flow both decreased, and margin narrowed.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly influences free cash flow margin.