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 compared to the prior quarter and the same quarter last year. Free cash flow margin strengthened year over year but weakened slightly from the preceding quarter.
- Operating cash flow as a share of revenue was higher than a year ago but slightly lower than the prior quarter, while capital expenditure increased modestly. The resulting free cash flow margin improved significantly year over year and remained near the prior quarter's level.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, while capital expenditure was slightly lower, leading to higher free cash flow but a slightly lower free cash flow margin. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin substantially improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$925.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$219.0M
Capital spending and related asset purchases.
FCF margin
25.2%
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 | $3.7B | $1.3B | $241.9M | $1.0B | 28.2% |
| 2024-12-31 | $3.8B | $1.3B | $199.6M | $1.1B | 28.1% |
| 2025-03-31 | $3.0B | $1.0B | $229.3M | $815.8M | 26.9% |
| 2025-06-30 | $3.7B | $1.1B | $219.0M | $925.4M | 25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.0% | 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 rose compared to both the prior quarter and the same quarter last year, providing the primary support for free cash flow improvement.
Higher operating cash flow drove free cash flow higher despite a modest increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than a year ago but slightly lower than the prior quarter, while capital expenditure increased modestly. The resulting free cash flow margin improved significantly year over year and remained near the prior quarter's level.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, while capital expenditure was slightly lower, leading to higher free cash flow but a slightly lower free cash flow margin. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin substantially improved.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased year over year and remained elevated versus the prior quarter.