Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sequentially but declined from the same quarter last year. Cash conversion strengthened primarily due to higher operating cash flow.
- Revenue rose from the prior quarter, and operating cash flow increased at a faster pace, more than offsetting a slight uptick in capital expenditure. This drove a higher free cash flow margin.
- Compared with the previous quarter, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were lower, while capital expenditure was slightly 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
$253.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$287.5M
Cash generated by operations before capital spending.
CapEx
$34.5M
Capital spending and related asset purchases.
FCF margin
5.7%
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 | $4.5B | $455.9M | $38.7M | $417.2M | 9.3% |
| 2024-12-31 | $4.9B | $567.6M | $24.5M | $543.1M | 11.0% |
| 2025-03-31 | $3.9B | $134.2M | $29.6M | $104.6M | 2.7% |
| 2025-06-30 | $4.4B | $287.5M | $34.5M | $253.0M | 5.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 Recovery
Operating cash flow posted a notable sequential increase, which was the primary factor behind the rise in free cash flow and margin. However, it still trails the level from one year earlier.
If operating cash flow continues to build on its current momentum, free cash flow and margin could strengthen further; otherwise, they may remain under year-ago pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter, and operating cash flow increased at a faster pace, more than offsetting a slight uptick in capital expenditure. This drove a higher free cash flow margin.
Compared with the previous quarter, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were lower, while capital expenditure was slightly higher.
Monitor whether operating cash flow can sustain its sequential improvement or revert toward the lower year-ago level.