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 increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved from the prior quarter but was slightly lower than the year-ago period.
- Operating cash flow as a proportion of revenue was stable relative to the year-ago quarter and higher than the prior quarter. Capital expenditure was lower than the prior quarter but slightly higher than the year-ago quarter, resulting in free cash flow that was higher than the prior quarter and comparable to the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Compared to the same quarter last year, revenue was higher, operating cash flow was stable, free cash flow was slightly lower, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$702.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$407.0M
Capital spending and related asset purchases.
FCF margin
16.6%
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 | $4.1B | $1.0B | $453.7M | $549.3M | 13.5% |
| 2024-12-31 | $4.0B | $1.0B | $498.0M | $524.0M | 13.0% |
| 2025-03-31 | $4.0B | $1.0B | $459.0M | $566.0M | 14.1% |
| 2025-06-30 | $4.2B | $1.1B | $407.0M | $702.0M | 16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.6% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the same quarter last year, providing a larger base for cash generation.
Higher revenue supported an increase in operating cash flow and free cash flow compared to the prior 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 was stable relative to the year-ago quarter and higher than the prior quarter. Capital expenditure was lower than the prior quarter but slightly higher than the year-ago quarter, resulting in free cash flow that was higher than the prior quarter and comparable to the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Compared to the same quarter last year, revenue was higher, operating cash flow was stable, free cash flow was slightly lower, and free cash flow margin weakened.
Monitor the trend in capital expenditure relative to operating cash flow, as it was lower than the prior quarter but slightly higher than the year-ago quarter.