Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from the prior quarter but increased from the same quarter last year. The cash conversion margin narrowed sequentially while widening year-over-year.
- The company's cash conversion, measured by free cash flow as a percentage of revenue, was higher than a year ago but lower than the prior quarter. Operating cash flow was the primary component, with capital expenditure also lower than both prior periods.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, while revenue was slightly higher, resulting in a weaker cash conversion. Versus the same quarter last year, operating cash flow, free cash flow, and revenue all improved, and the margin widened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$526.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$716.0M
Cash generated by operations before capital spending.
CapEx
$190.0M
Capital spending and related asset purchases.
FCF margin
16.4%
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 | $2.8B | $671.0M | $202.0M | $469.0M | 16.8% |
| 2024-12-31 | $3.0B | $1.6B | $253.0M | $1.4B | 46.7% |
| 2025-03-31 | $3.1B | $1.7B | $205.0M | $1.5B | 47.7% |
| 2025-06-30 | $3.2B | $716.0M | $190.0M | $526.0M | 16.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | 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.
Operating Cash Flow Decline
Operating cash flow decreased significantly compared to the prior quarter, while revenue increased only modestly. This was the primary factor behind the lower free cash flow.
The reduced operating cash flow constrained free cash flow generation relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company's cash conversion, measured by free cash flow as a percentage of revenue, was higher than a year ago but lower than the prior quarter. Operating cash flow was the primary component, with capital expenditure also lower than both prior periods.
Compared to the prior quarter, operating cash flow and free cash flow were lower, while revenue was slightly higher, resulting in a weaker cash conversion. Versus the same quarter last year, operating cash flow, free cash flow, and revenue all improved, and the margin widened.
The sequential decline in operating cash flow, which dropped sharply from the prior quarter, is a concrete item to monitor.