Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher revenue and a lower capital expenditure relative to operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue increased while operating cash flow decreased from the prior quarter, resulting in a lower cash conversion rate. Capital expenditure rose, further reducing free cash flow sequentially, though free cash flow margin remained positive.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, despite higher revenue. Versus the same quarter one year earlier, free cash flow and free cash flow margin were higher, supported by stronger operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$625.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$129.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$299.6M
Cash generated by operations before capital spending.
CapEx
$169.7M
Capital spending and related asset purchases.
FCF margin
6.0%
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 | $2.2B | $327.1M | $146.7M | $180.4M | 8.3% |
| 2024-12-31 | $2.1B | $325.4M | $201.3M | $124.1M | 5.8% |
| 2025-03-31 | $2.1B | $339.1M | $148.1M | $191.0M | 8.9% |
| 2025-06-30 | $2.2B | $299.6M | $169.7M | $129.9M | 6.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 53.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | 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.
Year-over-year free cash flow improvement
Free cash flow and free cash flow margin were substantially higher than the same quarter last year, driven by a combination of higher revenue, increased operating cash flow, and lower capital expenditure.
This strengthened the company's cash generation capacity compared to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow decreased from the prior quarter, resulting in a lower cash conversion rate. Capital expenditure rose, further reducing free cash flow sequentially, though free cash flow margin remained positive.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, despite higher revenue. Versus the same quarter one year earlier, free cash flow and free cash flow margin were higher, supported by stronger operating cash flow and lower capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as a higher ratio this quarter reduced free cash flow conversion.