Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after a negative prior quarter, though it remained lower than the same quarter last year. The improvement was driven by a shift from negative to positive operating cash flow, while capital expenditure was reduced.
- Revenue was higher than the prior quarter, and operating cash flow turned positive, resulting in a positive free cash flow margin. Compared to the year-ago quarter, revenue was slightly lower and operating cash flow was lower, leading to a lower free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin shifting from negative to positive. Compared to the same quarter last year, revenue was slightly lower, operating cash flow was lower, and free cash flow and margin were both lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$960.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$555.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$718.3M
Cash generated by operations before capital spending.
CapEx
$163.3M
Capital spending and related asset purchases.
FCF margin
14.8%
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 | $3.6B | $521.2M | $170.8M | $350.4M | 9.7% |
| 2024-12-31 | $3.2B | $494.5M | $111.1M | $383.4M | 11.8% |
| 2025-03-31 | $2.7B | -$90.7M | $237.3M | -$328.0M | -12.2% |
| 2025-06-30 | $3.7B | $718.3M | $163.3M | $555.0M | 14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | 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 turned from negative in the prior quarter to positive in the current quarter, which was the primary factor behind the swing in free cash flow. Capital expenditure was also lower than both the prior quarter and the year-ago quarter.
The recovery in operating cash flow was the strongest observable driver, directly enabling positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow turned positive, resulting in a positive free cash flow margin. Compared to the year-ago quarter, revenue was slightly lower and operating cash flow was lower, leading to a lower free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin shifting from negative to positive. Compared to the same quarter last year, revenue was slightly lower, operating cash flow was lower, and free cash flow and margin were both lower.
Monitor whether operating cash flow can sustain its positive level in upcoming quarters, given the prior quarter's negative figure.