Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved both sequentially and year-over-year, with free cash flow margin expanding. Revenue was stable sequentially but higher compared to the same quarter last year.
- Revenue remained stable sequentially while operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin relative to the prior quarter. Capital expenditure rose modestly but was more than offset by the growth in operating cash flow.
- Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics showed stronger improvement, with free cash flow margin expanding notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$687.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$746.0M
Cash generated by operations before capital spending.
CapEx
$59.0M
Capital spending and related asset purchases.
FCF margin
32.9%
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 | $1.9B | $244.0M | $56.0M | $188.0M | 9.9% |
| 2024-12-31 | $2.0B | $705.0M | $60.0M | $645.0M | 31.8% |
| 2025-03-31 | $2.1B | $663.0M | $49.0M | $614.0M | 29.3% |
| 2025-06-30 | $2.1B | $746.0M | $59.0M | $687.0M | 32.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.9B | 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 Strength
Operating cash flow drove the increase in free cash flow, rising from both the prior quarter and the year-ago quarter. The company's liquidity and capital resources commentary indicated healthy funding conditions and a balanced approach to capital deployment, including internal investments, debt repayments, and shareholder returns.
The free cash flow margin expanded, reflecting stronger cash generation relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable sequentially while operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin relative to the prior quarter. Capital expenditure rose modestly but was more than offset by the growth in operating cash flow.
Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics showed stronger improvement, with free cash flow margin expanding notably.
Monitor capital expenditure trends, as they increased sequentially while operating cash flow also rose.