Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow improved sequentially, but free cash flow was slightly lower due to higher capital expenditure. Compared to the same quarter last year, all cash flow metrics were weaker.
- Operating cash flow was materially lower than revenue, and after deducting a higher capital expenditure, free cash flow yielded a single-digit free cash flow margin, reflecting weakening cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue increased while operating cash flow was nearly stable, but capital expenditure rose, causing free cash flow and its margin to decline slightly. Versus the same quarter one year ago, revenue was higher, yet operating cash flow, free cash flow, and margin all weakened considerably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$456.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$756.8M
Cash generated by operations before capital spending.
CapEx
$300.7M
Capital spending and related asset purchases.
FCF margin
10.1%
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 | $4.4B | $772.0M | $258.3M | $513.7M | 11.8% |
| 2024-12-31 | $4.1B | $624.5M | $290.5M | $334.0M | 8.2% |
| 2025-03-31 | $4.1B | $755.1M | $287.0M | $468.2M | 11.3% |
| 2025-06-30 | $4.5B | $756.8M | $300.7M | $456.1M | 10.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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.
Capital Expenditure Growth
Capital expenditure rose substantially compared to both the prior quarter and the year-ago quarter, outpacing the growth in operating cash flow. This was the strongest observable driver of the decline in free cash flow.
Higher capital expenditure 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.
Operating cash flow was materially lower than revenue, and after deducting a higher capital expenditure, free cash flow yielded a single-digit free cash flow margin, reflecting weakening cash conversion efficiency.
Compared to the immediately preceding quarter, revenue increased while operating cash flow was nearly stable, but capital expenditure rose, causing free cash flow and its margin to decline slightly. Versus the same quarter one year ago, revenue was higher, yet operating cash flow, free cash flow, and margin all weakened considerably.
Monitor capital expenditure trajectory, as the increase absorbed a larger share of operating cash flow in the current quarter.