Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin weakened sequentially but strengthened year over year.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the operating cash flow margin, reflecting the capital expenditure outlay.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, leading to a lower free cash flow and a weakened free cash flow margin. Compared to the same quarter one year earlier, all metrics were higher and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$706.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$189.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$237.6M
Cash generated by operations before capital spending.
CapEx
$48.1M
Capital spending and related asset purchases.
FCF margin
28.5%
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 | $620.1M | $231.7M | $33.8M | $197.9M | 31.9% |
| 2024-12-31 | $621.7M | $167.7M | $64.8M | $102.9M | 16.5% |
| 2025-03-31 | $637.6M | $256.4M | $40.3M | $216.0M | 33.9% |
| 2025-06-30 | $664.6M | $237.6M | $48.1M | $189.5M | 28.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 140.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | 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.
Revenue growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base for cash generation. This was the strongest observable driver of the increase in free cash flow compared to the prior year.
Higher revenue supported a higher absolute free cash flow despite a lower conversion rate from operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the operating cash flow margin, reflecting the capital expenditure outlay.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, leading to a lower free cash flow and a weakened free cash flow margin. Compared to the same quarter one year earlier, all metrics were higher and the free cash flow margin improved.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite higher revenue.