Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. However, operating cash flow, free cash flow, and free cash flow margin all declined compared to both periods.
- Operating cash flow as a proportion of revenue weakened, leading to a lower free cash flow margin despite higher revenue. Capital expenditure was higher than both the prior quarter and the year-ago quarter, further reducing free cash flow conversion.
- Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$692.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$898.0M
Cash generated by operations before capital spending.
CapEx
$206.0M
Capital spending and related asset purchases.
FCF margin
8.3%
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 | $7.8B | $1.6B | $169.0M | $1.4B | 18.4% |
| 2024-12-31 | $8.4B | $2.4B | $203.0M | $2.2B | 26.2% |
| 2025-03-31 | $7.8B | $1.2B | $196.0M | $964.0M | 12.4% |
| 2025-06-30 | $8.3B | $898.0M | $206.0M | $692.0M | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 Weakening
Operating cash flow decreased compared to both the prior quarter and the same quarter last year, while revenue increased. This divergence is the strongest observable driver of the lower free cash flow and margin.
The decline in operating cash flow relative to revenue directly reduced free cash flow and free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened, leading to a lower free cash flow margin despite higher revenue. Capital expenditure was higher than both the prior quarter and the year-ago quarter, further reducing free cash flow conversion.
Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trajectory of operating cash flow, as it declined from both the prior quarter and the year-ago quarter despite higher revenue.