Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive with a solid margin, driven by a significant rise in operating cash flow and lower capital spending compared to the prior quarter. Versus the same quarter last year, operating cash flow improved substantially while revenue was stable.
- Revenue remained steady sequentially and year over year, but operating cash flow increased sharply, enabling free cash flow to become positive after deducting capital expenditure.
- Compared to the prior quarter, revenue was higher, operating cash flow improved, capital expenditure was lower, and free cash flow swung from negative to positive. Versus the same quarter a year ago, revenue was stable, operating cash flow was substantially higher, and free cash flow turned positive from a deficit.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$713.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$208.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$387.0M
Cash generated by operations before capital spending.
CapEx
$179.0M
Capital spending and related asset purchases.
FCF margin
10.4%
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 | $1.2B | $600.0M | $283.0M | $317.0M | 25.7% |
| 2024-12-31 | $1.4B | $686.0M | $483.0M | $203.0M | 14.4% |
| 2025-03-31 | $1.2B | $218.0M | $233.0M | -$15.0M | -1.3% |
| 2025-06-30 | $2.0B | $387.0M | $179.0M | $208.0M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.2B | 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 Surge
Operating cash flow rose sharply compared to both the prior quarter and the same quarter last year, reflecting higher net earnings and changes in working capital, while the year-ago period included a divestiture gain.
This improvement was the primary factor converting negative free cash flow to positive with a meaningful margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained steady sequentially and year over year, but operating cash flow increased sharply, enabling free cash flow to become positive after deducting capital expenditure.
Compared to the prior quarter, revenue was higher, operating cash flow improved, capital expenditure was lower, and free cash flow swung from negative to positive. Versus the same quarter a year ago, revenue was stable, operating cash flow was substantially higher, and free cash flow turned positive from a deficit.
Monitor whether capital expenditure levels remain below the prior quarter and if operating cash flow can sustain its improvement.