Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved compared to the prior quarter and turned positive from a negative year-ago level. The free cash flow margin strengthened sequentially and reversed from a negative margin one year earlier.
- Revenue increased while operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further supporting free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was slightly higher, while operating cash flow and free cash flow shifted from negative to positive, and the margin turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$840.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$863.6M
Cash generated by operations before capital spending.
CapEx
$22.7M
Capital spending and related asset purchases.
FCF margin
14.6%
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 | $5.9B | $408.9M | $44.3M | $364.6M | 6.1% |
| 2024-12-31 | $5.7B | -$239.8M | $27.5M | -$267.3M | -4.7% |
| 2025-03-31 | $4.6B | $626.8M | $32.7M | $594.1M | 12.9% |
| 2025-06-30 | $5.8B | $863.6M | $22.7M | $840.9M | 14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 430.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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 Strength
Operating cash flow increased from the prior quarter and reversed from a negative year-ago level, driving a substantial improvement in free cash flow. The free cash flow margin rose sequentially and turned positive year-over-year.
Higher operating cash flow was the primary factor behind the improved free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further supporting free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was slightly higher, while operating cash flow and free cash flow shifted from negative to positive, and the margin turned from negative to positive.
Monitor the level of capital expenditure relative to operating cash flow, as it was notably lower this quarter compared to both the prior and year-ago periods.