Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow both declined compared to the previous quarter and the same quarter last year. The free cash flow margin weakened, primarily due to lower operating cash flow relative to revenue.
- Revenue was stable compared to a year ago but slightly lower sequentially. Operating cash flow decreased more than revenue, resulting in a lower free cash flow margin. Capital expenditure was lower in both comparisons, which partially offset the decline in operating cash flow.
- Compared to the prior quarter, all cash flow metrics and the margin were lower. Versus the same quarter a year ago, revenue was stable while operating cash flow, free cash flow, and margin were lower, though capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$467.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$529.9M
Cash generated by operations before capital spending.
CapEx
$62.2M
Capital spending and related asset purchases.
FCF margin
27.1%
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 | $1.8B | $652.5M | $104.6M | $547.9M | 30.7% |
| 2024-12-31 | $1.8B | -$281.9M | $113.0M | -$394.9M | -21.6% |
| 2025-03-31 | $1.8B | $632.9M | $82.0M | $550.9M | 31.2% |
| 2025-06-30 | $1.7B | $529.9M | $62.2M | $467.7M | 27.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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.
Operating Cash Flow Weakening
Operating cash flow declined more than revenue both sequentially and year-over-year, driving the reduction in free cash flow and margin. This was the strongest observable factor in the quarter.
Lower operating cash flow directly reduced free cash flow and margin despite stable revenue and lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to a year ago but slightly lower sequentially. Operating cash flow decreased more than revenue, resulting in a lower free cash flow margin. Capital expenditure was lower in both comparisons, which partially offset the decline in operating cash flow.
Compared to the prior quarter, all cash flow metrics and the margin were lower. Versus the same quarter a year ago, revenue was stable while operating cash flow, free cash flow, and margin were lower, though capital expenditure was also lower.
Monitor whether operating cash flow stabilizes relative to revenue in upcoming quarters.