Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased sequentially, supported by higher operating cash flow and stable capital expenditure. However, compared to the same quarter last year, free cash flow and margin declined even as revenue grew.
- Revenue rose versus the prior quarter, and operating cash flow improved, driving free cash flow higher and expanding the free cash flow margin. Relative to the same quarter a year earlier, revenue was higher but operating cash flow was lower, compressing the free cash flow margin.
- Sequentially, free cash flow and margin improved. Year-over-year, free cash flow and margin weakened, with revenue higher but cash generation lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$324.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$336.2M
Cash generated by operations before capital spending.
CapEx
$11.3M
Capital spending and related asset purchases.
FCF margin
42.0%
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 | $724.7M | $421.6M | $6.6M | $415.0M | 57.3% |
| 2024-12-31 | $743.5M | $430.6M | $14.2M | $416.4M | 56.0% |
| 2025-03-31 | $745.8M | $301.7M | $11.6M | $290.1M | 38.9% |
| 2025-06-30 | $772.7M | $336.2M | $11.3M | $324.8M | 42.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | 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 Conversion
Revenue increased both sequentially and year-over-year, but operating cash flow decreased compared to the same quarter last year, resulting in a lower free cash flow margin.
The ability to convert revenue into cash flow has weakened year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose versus the prior quarter, and operating cash flow improved, driving free cash flow higher and expanding the free cash flow margin. Relative to the same quarter a year earlier, revenue was higher but operating cash flow was lower, compressing the free cash flow margin.
Sequentially, free cash flow and margin improved. Year-over-year, free cash flow and margin weakened, with revenue higher but cash generation lower.
Monitor the relationship between revenue growth and operating cash flow, as the latter declined year-over-year despite higher revenue.