Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter showed a significant improvement in cash generation compared to the prior quarter, with operating cash flow turning positive and free cash flow rising. Revenue was stable relative to the same quarter a year ago, while both operating cash flow and free cash flow were higher.
- Revenue increased from the prior quarter and was comparable to the year-ago level. Operating cash flow grew substantially, more than offsetting a lower capital expenditure, resulting in positive free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, all metrics improved: revenue was higher, operating cash flow turned from negative to positive, capital expenditure was lower, and free cash flow and margin turned positive. Versus the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were higher, capital expenditure was slightly higher, and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$800.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$266.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$387.0M
Cash generated by operations before capital spending.
CapEx
$121.0M
Capital spending and related asset purchases.
FCF margin
6.3%
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 | $4.0B | $769.0M | $146.0M | $623.0M | 15.5% |
| 2024-12-31 | $3.7B | $346.0M | $208.0M | $138.0M | 3.7% |
| 2025-03-31 | $3.7B | -$18.0M | $209.0M | -$227.0M | -6.2% |
| 2025-06-30 | $4.2B | $387.0M | $121.0M | $266.0M | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.8B | 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 turned from negative in the prior quarter to positive in the current quarter, and also exceeded the level from the same quarter a year ago. This was the primary factor behind the improvement in free cash flow and margin.
The strong operating cash flow enabled the company to generate positive free cash flow despite a modest increase in capital expenditure compared to the year-ago period.
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 was comparable to the year-ago level. Operating cash flow grew substantially, more than offsetting a lower capital expenditure, resulting in positive free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, all metrics improved: revenue was higher, operating cash flow turned from negative to positive, capital expenditure was lower, and free cash flow and margin turned positive. Versus the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were higher, capital expenditure was slightly higher, and margin improved.
Monitor the trend in capital expenditure relative to operating cash flow, as it decreased sequentially but remained above the year-ago level.