Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the prior quarter and the same quarter last year. The free cash flow margin weakened sequentially but improved relative to the year-ago period.
- Operating cash flow of two hundred forty-three point nine million dollars, less capital expenditure of one point nine million dollars, yielded free cash flow of two hundred forty-two million dollars. The free cash flow margin of thirty-seven point six percent reflects the relationship between free cash flow and revenue.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$849.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$242.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$243.9M
Cash generated by operations before capital spending.
CapEx
$1.9M
Capital spending and related asset purchases.
FCF margin
37.6%
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 | $626.5M | $98.1M | $4.5M | $93.6M | 14.9% |
| 2024-12-31 | $565.1M | $238.4M | $2.8M | $235.7M | 41.7% |
| 2025-03-31 | $636.4M | $281.3M | $2.8M | $278.5M | 43.8% |
| 2025-06-30 | $643.9M | $243.9M | $1.9M | $242.0M | 37.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 171.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the same quarter last year, providing a larger base for cash generation. This was the strongest observable driver of free cash flow improvement over the year-ago period.
Higher revenue supported an increase in free cash flow compared to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of two hundred forty-three point nine million dollars, less capital expenditure of one point nine million dollars, yielded free cash flow of two hundred forty-two million dollars. The free cash flow margin of thirty-seven point six percent reflects the relationship between free cash flow and revenue.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite higher revenue.