Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year, while operating cash flow and free cash flow were lower. Compared to the prior quarter, the company shifted from negative to positive free cash flow, with a significant improvement in cash conversion.
- Operating cash flow of the current quarter was lower than the year-ago quarter, and capital expenditure was also slightly lower, resulting in a free cash flow margin that was lower than the prior year. However, compared to the immediately preceding quarter, operating cash flow turned positive and free cash flow improved substantially.
- Relative to the prior quarter, free cash flow improved from negative to positive, and the free cash flow margin turned from negative to positive. Relative to the same quarter one year earlier, free cash flow and its margin were lower, while revenue was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$809.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$270.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$306.0M
Cash generated by operations before capital spending.
CapEx
$36.0M
Capital spending and related asset purchases.
FCF margin
13.2%
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 | $2.0B | $416.0M | $38.0M | $378.0M | 19.1% |
| 2024-12-31 | $1.8B | $407.0M | $56.0M | $351.0M | 19.2% |
| 2025-03-31 | $1.8B | -$158.0M | $32.0M | -$190.0M | -10.5% |
| 2025-06-30 | $2.1B | $306.0M | $36.0M | $270.0M | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 decline
Operating cash flow was lower than the same quarter last year, while revenue was unchanged, resulting in a lower free cash flow margin.
This reduction in cash conversion efficiency is a key factor to monitor in upcoming quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the current quarter was lower than the year-ago quarter, and capital expenditure was also slightly lower, resulting in a free cash flow margin that was lower than the prior year. However, compared to the immediately preceding quarter, operating cash flow turned positive and free cash flow improved substantially.
Relative to the prior quarter, free cash flow improved from negative to positive, and the free cash flow margin turned from negative to positive. Relative to the same quarter one year earlier, free cash flow and its margin were lower, while revenue was stable.
Monitor changes in receivables and inventories, which increased from year-end levels as shown in the balance sheet.