Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as revenue and operating cash flow rose, but declined compared with the same quarter last year despite unchanged revenue. Cash conversion weakened year over year, with free cash flow margin lower than a year earlier.
- Revenue increased from the prior quarter, and operating cash flow rose at a similar pace, leading to higher free cash flow and a slightly improved free cash flow margin. However, compared with the same quarter last year, operating cash flow was lower while revenue was unchanged, resulting in a lower free cash flow margin.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin both improved. Compared with the same quarter one year earlier, free cash flow and free cash flow margin were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$179.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$215.0M
Cash generated by operations before capital spending.
CapEx
$36.0M
Capital spending and related asset purchases.
FCF margin
5.0%
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 | $3.5B | $394.0M | $32.0M | $362.0M | 10.2% |
| 2024-12-31 | $3.7B | $690.0M | $39.0M | $651.0M | 17.7% |
| 2025-03-31 | $3.4B | $190.0M | $34.0M | $156.0M | 4.7% |
| 2025-06-30 | $3.6B | $215.0M | $36.0M | $179.0M | 5.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 45.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow increased from the prior quarter, driving free cash flow higher. However, this improvement reversed the year-over-year decline in cash generation efficiency, as free cash flow margin remained below the year-ago level.
The sequential increase in operating cash flow supported free cash flow growth, but the year-over-year decline in conversion efficiency warrants attention.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow rose at a similar pace, leading to higher free cash flow and a slightly improved free cash flow margin. However, compared with the same quarter last year, operating cash flow was lower while revenue was unchanged, resulting in a lower free cash flow margin.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin both improved. Compared with the same quarter one year earlier, free cash flow and free cash flow margin were lower, and capital expenditure was higher.
Monitor the relationship between revenue and operating cash flow, as the current quarter's operating cash flow was lower than a year ago on the same revenue.