Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow improved sequentially, lifting free cash flow and margin. Compared to the same quarter last year, revenue and operating cash flow were lower, though free cash flow margin held relatively stable.
- Operating cash flow as a share of revenue strengthened sequentially, and capital expenditure remained modest, resulting in a higher free cash flow margin. The conversion from revenue to free cash flow improved versus the prior quarter but was slightly weaker than the year-ago period.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, and free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were lower, while free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$725.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$257.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$275.6M
Cash generated by operations before capital spending.
CapEx
$17.9M
Capital spending and related asset purchases.
FCF margin
24.0%
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 | $1.2B | $43.6M | $20.8M | $22.8M | 2.0% |
| 2024-12-31 | $1.0B | $271.5M | $18.1M | $253.4M | 24.7% |
| 2025-03-31 | $970.5M | $205.9M | $14.2M | $191.7M | 19.8% |
| 2025-06-30 | $1.1B | $275.6M | $17.9M | $257.7M | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1385.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Revenue and Cash Flow Recovery
Revenue increased from the prior quarter, and operating cash flow rose at a faster pace, driving free cash flow higher. The filing notes a significant sequential improvement in overall business and higher net sales across product lines and geographies.
The stronger operating cash flow was the primary factor behind the quarter's improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue strengthened sequentially, and capital expenditure remained modest, resulting in a higher free cash flow margin. The conversion from revenue to free cash flow improved versus the prior quarter but was slightly weaker than the year-ago period.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, and free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were lower, while free cash flow margin was slightly lower.
Monitor the trajectory of operating cash flow relative to revenue, as its sequential improvement was a key factor in the quarter's cash conversion.