Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved versus the prior quarter and the same quarter last year. Free cash flow turned positive compared to a negative figure one year earlier, though it decreased from the immediately preceding quarter due to higher capital expenditure.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter. Free cash flow margin weakened sequentially but improved significantly from the negative margin a year earlier, reflecting the combined effect of higher operating cash flow and increased capital expenditure.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but free cash flow was lower due to a larger capital expenditure. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, and free cash flow were higher, and free cash flow margin turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$910.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$836.0M
Capital spending and related asset purchases.
FCF margin
20.1%
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 | $4.9B | $897.0M | $334.0M | $563.0M | 11.5% |
| 2024-12-31 | $3.8B | $1.5B | $552.0M | $915.0M | 24.3% |
| 2025-03-31 | $4.0B | $1.6B | $428.0M | $1.2B | 30.0% |
| 2025-06-30 | $4.5B | $1.7B | $836.0M | $910.0M | 20.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.4% | 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 Growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, supporting a positive free cash flow despite increased capital spending. This improvement in cash generation from operations was the strongest observable driver of the quarter's free cash flow performance.
Higher operating cash flow enabled the company to report positive free cash flow for the quarter, contrasting with a negative figure one year earlier.
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 was higher than both the prior quarter and the year-ago quarter. Free cash flow margin weakened sequentially but improved significantly from the negative margin a year earlier, reflecting the combined effect of higher operating cash flow and increased capital expenditure.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but free cash flow was lower due to a larger capital expenditure. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, and free cash flow were higher, and free cash flow margin turned from negative to positive.
Monitor the level of capital expenditure, as it increased substantially from the prior quarter and was the primary factor behind the sequential decline in free cash flow.