Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved versus the prior quarter, driving free cash flow higher despite a modest increase in capital expenditure. The free cash flow margin strengthened compared to the prior quarter but remained below the level of the year-ago quarter.
- Revenue increased from the prior quarter, and operating cash flow grew at a faster pace, resulting in a higher free cash flow. The free cash flow margin expanded, reflecting improved cash conversion efficiency.
- Compared to the prior quarter, operating cash flow and free cash flow were both higher, while capital expenditure was slightly higher. Relative to the year-ago quarter, operating cash flow and free cash flow were lower, and the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$901.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$283.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$549.0M
Cash generated by operations before capital spending.
CapEx
$266.0M
Capital spending and related asset purchases.
FCF margin
6.6%
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 | $4.0B | $333.0M | $247.9M | $85.0M | 2.1% |
| 2024-12-31 | $4.1B | $658.4M | $245.9M | $412.5M | 10.0% |
| 2025-03-31 | $4.1B | $360.0M | $239.0M | $121.0M | 3.0% |
| 2025-06-30 | $4.3B | $549.0M | $266.0M | $283.0M | 6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 improvement
Operating cash flow rose from the prior quarter, outpacing the increase in revenue. This was the main factor behind the higher free cash flow.
The higher operating cash flow improved the free cash flow margin and overall cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow grew at a faster pace, resulting in a higher free cash flow. The free cash flow margin expanded, reflecting improved cash conversion efficiency.
Compared to the prior quarter, operating cash flow and free cash flow were both higher, while capital expenditure was slightly higher. Relative to the year-ago quarter, operating cash flow and free cash flow were lower, and the free cash flow margin was lower.
Monitor the trajectory of operating cash flow, as it is the primary driver of free cash flow variation.