Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply, lifting free cash flow and margin well above the prior quarter and the year-ago quarter. The conversion from revenue to cash strengthened across all comparisons.
- Revenue was slightly lower than the prior quarter, yet operating cash flow rose substantially, resulting in a much higher free cash flow margin. Capital expenditure increased but remained a moderate use of cash.
- Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, all three metrics were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$908.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$326.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$420.0M
Cash generated by operations before capital spending.
CapEx
$93.6M
Capital spending and related asset purchases.
FCF margin
23.5%
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 | $1.3B | $250.8M | $101.9M | $148.9M | 11.2% |
| 2024-12-31 | $1.4B | $332.8M | $89.2M | $243.6M | 17.8% |
| 2025-03-31 | $1.5B | $260.8M | $70.9M | $189.9M | 12.8% |
| 2025-06-30 | $1.4B | $420.0M | $93.6M | $326.4M | 23.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 184.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow was the strongest driver, rising sharply from both the prior quarter and the year-ago quarter. According to the filing, the increase was supported by higher earnings and working capital changes, particularly a higher accounts payable balance due to timing of disbursements.
The improved cash conversion directly lifted free cash flow and margin, creating a markedly stronger cash position for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, yet operating cash flow rose substantially, resulting in a much higher free cash flow margin. Capital expenditure increased but remained a moderate use of cash.
Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, all three metrics were also higher.
Monitor the sustainability of the higher operating cash flow level given the contribution from timing of disbursements noted in the filing.