Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year. The increase was driven by higher operating cash flow coupled with lower capital expenditure compared to last year.
- Revenue was slightly higher period over period, while operating cash flow grew faster, resulting in a stronger cash conversion rate. Capital expenditure rose modestly from the prior quarter but remained below the year-ago level, supporting free cash flow expansion.
- Compared to the prior quarter, free cash flow and free cash flow margin both improved. Versus the same quarter last year, free cash flow was higher and the margin widened, driven by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$602.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$475.0M
Capital spending and related asset purchases.
FCF margin
19.4%
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 | $3.1B | $1.2B | $581.0M | $645.0M | 21.1% |
| 2024-12-31 | $3.0B | $951.0M | $675.0M | $276.0M | 9.1% |
| 2025-03-31 | $3.0B | $950.0M | $449.0M | $501.0M | 16.7% |
| 2025-06-30 | $3.1B | $1.1B | $475.0M | $602.0M | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.3% | 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 Growth
Operating cash flow rose compared to both the prior quarter and the year-ago quarter. This increase was the primary factor behind the improvement in free cash flow and free cash flow margin.
Higher operating cash flow enabled stronger free cash flow generation without relying on capital expenditure reduction from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher period over period, while operating cash flow grew faster, resulting in a stronger cash conversion rate. Capital expenditure rose modestly from the prior quarter but remained below the year-ago level, supporting free cash flow expansion.
Compared to the prior quarter, free cash flow and free cash flow margin both improved. Versus the same quarter last year, free cash flow was higher and the margin widened, driven by higher operating cash flow and lower capital expenditure.
Monitor the trend in capital expenditure after the sequential increase from the prior quarter.