Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, while free cash flow margin strengthened. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were slightly lower, resulting in a slightly weaker margin.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but slightly lower than the same quarter last year. After deducting capital expenditure, free cash flow margin improved sequentially but remained below the year-ago level.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$602.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$692.1M
Cash generated by operations before capital spending.
CapEx
$89.9M
Capital spending and related asset purchases.
FCF margin
10.5%
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 | $5.4B | $1.3B | $88.3M | $1.2B | 22.3% |
| 2024-12-31 | $4.9B | $899.9M | $125.6M | $774.3M | 15.9% |
| 2025-03-31 | $4.7B | $339.5M | $118.9M | $220.6M | 4.7% |
| 2025-06-30 | $5.7B | $692.1M | $89.9M | $602.2M | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Sequential cash flow improvement
Operating cash flow increased substantially from the prior quarter, driving a higher free cash flow and an improved free cash flow margin. This was the strongest observable driver in the current quarter.
The sequential improvement in cash generation strengthened the company's liquidity position relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but slightly lower than the same quarter last year. After deducting capital expenditure, free cash flow margin improved sequentially but remained below the year-ago level.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin.
Monitor the trend in capital expenditure, which was lower than the prior quarter but higher than the year-ago quarter.