Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a significant improvement in operating cash flow. Revenue was slightly higher than the prior quarter and the same quarter last year.
- Operating cash flow improved markedly from the prior quarter, while capital expenditure remained stable, resulting in positive free cash flow. The free cash flow margin strengthened from negative to positive, though it remained lower than the year-ago level.
- Compared to the prior quarter, operating cash flow and free cash flow both improved, with free cash flow turning from negative to positive. Versus the same quarter last year, operating cash flow and free cash flow were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$147.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$59.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$169.0M
Cash generated by operations before capital spending.
CapEx
$110.0M
Capital spending and related asset purchases.
FCF margin
2.7%
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 | $2.1B | $169.0M | $93.0M | $76.0M | 3.7% |
| 2024-12-31 | $2.1B | $219.0M | $127.0M | $92.0M | 4.4% |
| 2025-03-31 | $2.1B | $29.0M | $109.0M | -$80.0M | -3.9% |
| 2025-06-30 | $2.2B | $169.0M | $110.0M | $59.0M | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.3B | 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 Recovery
Operating cash flow increased substantially from the prior quarter, which was the primary factor behind the swing to positive free cash flow. This improvement occurred even as revenue rose only modestly.
The recovery in operating cash flow was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved markedly from the prior quarter, while capital expenditure remained stable, resulting in positive free cash flow. The free cash flow margin strengthened from negative to positive, though it remained lower than the year-ago level.
Compared to the prior quarter, operating cash flow and free cash flow both improved, with free cash flow turning from negative to positive. Versus the same quarter last year, operating cash flow and free cash flow were lower, and capital expenditure was higher.
Monitor whether operating cash flow can sustain its improvement in the coming quarters.