Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Free cash flow improved compared to a year ago but weakened from the preceding quarter.
- Operating cash flow was lower than the prior quarter but significantly higher than a year ago. Capital expenditure increased from both comparison periods, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year. The free cash flow margin weakened sequentially but improved year over year.
- Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were lower. Compared to the same quarter a year ago, revenue was lower but operating cash flow and free cash flow were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$611.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$833.4M
Cash generated by operations before capital spending.
CapEx
$222.1M
Capital spending and related asset purchases.
FCF margin
8.1%
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 | $8.2B | $1.3B | $193.7M | $1.1B | 13.3% |
| 2024-12-31 | $7.9B | $1.4B | $233.4M | $1.2B | 15.3% |
| 2025-03-31 | $7.4B | $910.3M | $165.1M | $745.2M | 10.0% |
| 2025-06-30 | $7.5B | $833.4M | $222.1M | $611.3M | 8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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 Improvement
Operating cash flow was substantially higher than the same quarter a year ago, despite lower revenue. This was the strongest observable driver of free cash flow improvement on a year-over-year basis.
Higher operating cash flow supported free cash flow growth compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but significantly higher than a year ago. Capital expenditure increased from both comparison periods, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year. The free cash flow margin weakened sequentially but improved year over year.
Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were lower. Compared to the same quarter a year ago, revenue was lower but operating cash flow and free cash flow were higher.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.