Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was roughly stable versus a year ago but improved from the prior quarter. However, a sharp drop in operating cash flow drove free cash flow to a fraction of both prior periods, compressing the free cash flow margin well below year-ago and prior-quarter levels.
- The conversion from revenue to free cash flow weakened materially this quarter. Operating cash flow declined sharply relative to both the prior quarter and the year-ago quarter, while capital expenditure increased slightly, resulting in a free cash flow margin that was notably lower than the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue was higher but operating cash flow was sharply lower, leading to a much lower free cash flow margin. Versus the same quarter one year earlier, revenue was stable, while operating cash flow was significantly lower and free cash flow declined meaningfully, with the margin contracting substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$26.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$35.1M
Cash generated by operations before capital spending.
CapEx
$8.3M
Capital spending and related asset purchases.
FCF margin
1.0%
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 | $2.7B | $358.3M | $8.2M | $350.1M | 12.8% |
| 2024-12-31 | $2.8B | $637.0M | $5.6M | $631.5M | 22.2% |
| 2025-03-31 | $2.4B | $207.8M | $7.1M | $200.7M | 8.4% |
| 2025-06-30 | $2.6B | $35.1M | $8.3M | $26.8M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 8.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 Contraction
The most prominent observable factor this quarter is the large decline in operating cash flow relative to both prior periods, despite revenue that was stable or higher. This drove a disproportionally steep drop in free cash flow and margin.
The free cash flow margin fell to a low single-digit level, far below the prior quarter and the prior-year quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion from revenue to free cash flow weakened materially this quarter. Operating cash flow declined sharply relative to both the prior quarter and the year-ago quarter, while capital expenditure increased slightly, resulting in a free cash flow margin that was notably lower than the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue was higher but operating cash flow was sharply lower, leading to a much lower free cash flow margin. Versus the same quarter one year earlier, revenue was stable, while operating cash flow was significantly lower and free cash flow declined meaningfully, with the margin contracting substantially.
Monitor whether the operating cash flow recovers toward historical levels, as the current quarter's low conversion rate departs sharply from recent patterns.