Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose more than capital expenditure, though the margin remained below the year-ago level. Revenue increased compared with both the prior quarter and the same quarter last year.
- Operating cash flow of the current quarter converted into free cash flow after deducting capital expenditure, yielding a free cash flow margin that was higher than the prior quarter but lower than the same quarter one year earlier.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and the free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$155.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$295.7M
Cash generated by operations before capital spending.
CapEx
$140.3M
Capital spending and related asset purchases.
FCF margin
2.3%
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 | $6.5B | $739.9M | $212.5M | $527.4M | 8.1% |
| 2024-12-31 | $6.6B | $712.0M | $147.0M | $565.0M | 8.6% |
| 2025-03-31 | $6.2B | $243.2M | $132.8M | $110.4M | 1.8% |
| 2025-06-30 | $6.8B | $295.7M | $140.3M | $155.4M | 2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Sequential operating cash flow growth
Operating cash flow increased from the prior quarter, which was the strongest observable driver of the sequential improvement in free cash flow. Capital expenditure also rose but at a smaller magnitude.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin compared with the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the current quarter converted into free cash flow after deducting capital expenditure, yielding a free cash flow margin that was higher than the prior quarter but lower than the same quarter one year earlier.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and the free cash flow margin were all lower.
Monitor the trend in free cash flow margin relative to the year-ago level, as it weakened despite higher revenue.