Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved substantially from the prior quarter and the year-ago quarter. The free cash flow margin widened significantly in the current period.
- Revenue rose while operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure remained low relative to operating cash flow, supporting strong cash conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$531.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$539.3M
Cash generated by operations before capital spending.
CapEx
$7.6M
Capital spending and related asset purchases.
FCF margin
53.0%
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 | $725.5M | $419.8M | $4.0M | $415.8M | 57.3% |
| 2024-12-31 | $827.5M | $460.3M | $3.1M | $457.2M | 55.3% |
| 2025-03-31 | $883.9M | $310.3M | $6.2M | $304.1M | 34.4% |
| 2025-06-30 | $1.0B | $539.3M | $7.6M | $531.6M | 53.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.7% | 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 Expansion
Operating cash flow increased sequentially and year-over-year, growing at a rate faster than revenue. This drove free cash flow higher and expanded the free cash flow margin.
The improvement in operating cash flow was the primary factor behind the stronger free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure remained low relative to operating cash flow, supporting strong cash conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher and the margin strengthened.
Monitor the progression of accounts receivable, which increased from the prior year-end balance.