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 were lower than both the prior quarter and the same quarter last year, while revenue remained stable. The free cash flow margin weakened compared to both periods.
- Revenue was unchanged from the prior quarter and the year-ago quarter, but operating cash flow was lower, resulting in a lower free cash flow margin. Capital expenditure was stable versus the prior quarter and lower than the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was stable. Compared to the same quarter one year earlier, operating cash flow and free cash flow were also lower, with revenue stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$12.4M
Capital spending and related asset purchases.
FCF margin
150.8%
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 | $1.2B | $611.1M | $25.7M | $585.4M | 48.9% |
| 2024-12-31 | $1.2B | -$2.6B | $40.7M | -$2.7B | -218.9% |
| 2025-03-31 | $1.2B | $2.7B | $12.4M | $2.7B | 225.5% |
| 2025-06-30 | $1.2B | $1.9B | $12.4M | $1.9B | 150.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 440.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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 was lower than both the prior quarter and the year-ago quarter, while revenue was unchanged. This drove the reduction in free cash flow and the weakening of the free cash flow margin.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and the year-ago quarter, but operating cash flow was lower, resulting in a lower free cash flow margin. Capital expenditure was stable versus the prior quarter and lower than the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was stable. Compared to the same quarter one year earlier, operating cash flow and free cash flow were also lower, with revenue stable.
Monitor the trend in operating cash flow, as it declined from both the prior quarter and the year-ago quarter while revenue remained flat.