Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly this quarter compared to both the prior quarter and the same quarter last year. The increase was driven by higher operating cash flow while capital expenditure remained stable.
- Revenue was stable relative to the prior quarter and the year-ago quarter, while operating cash flow rose substantially, leading to a higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin strengthened. Versus the same quarter one year earlier, all cash flow metrics improved, with operating cash flow and free cash flow both higher and the margin wider.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$489.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$527.0M
Cash generated by operations before capital spending.
CapEx
$38.0M
Capital spending and related asset purchases.
FCF margin
22.8%
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 | $2.0B | $432.0M | $65.0M | $367.0M | 18.0% |
| 2024-12-31 | $1.9B | $364.0M | $71.0M | $293.0M | 15.6% |
| 2025-03-31 | $2.0B | $199.0M | $28.0M | $171.0M | 8.5% |
| 2025-06-30 | $2.1B | $527.0M | $38.0M | $489.0M | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 Strength
Operating cash flow was the strongest observable driver, rising markedly from both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable.
This directly lifted free cash flow and the free cash flow margin to levels higher than in the comparable periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter and the year-ago quarter, while operating cash flow rose substantially, leading to a higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin strengthened. Versus the same quarter one year earlier, all cash flow metrics improved, with operating cash flow and free cash flow both higher and the margin wider.
Monitor whether operating cash flow can sustain its elevated level in the coming quarter.