Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened as revenue increased while capital spending declined.
- Revenue rose from the prior quarter, and operating cash flow increased at a faster pace, while capital expenditure decreased, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were substantially higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$238.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$341.7M
Cash generated by operations before capital spending.
CapEx
$102.9M
Capital spending and related asset purchases.
FCF margin
11.4%
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 | $2.0B | $595.0M | $96.8M | $498.2M | 24.9% |
| 2024-12-31 | $1.9B | $440.1M | $162.5M | $277.6M | 15.0% |
| 2025-03-31 | $1.6B | $251.5M | $168.0M | $83.5M | 5.1% |
| 2025-06-30 | $2.1B | $341.7M | $102.9M | $238.8M | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.0B | 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 Growth
Operating cash flow increased from both the prior quarter and the same quarter last year, while capital expenditure declined, leading to a higher free cash flow and margin.
The combination of higher operating cash flow and lower capital expenditure was the strongest observable driver of the improved free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter, and operating cash flow increased at a faster pace, while capital expenditure decreased, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were substantially higher, and capital expenditure was lower.
Monitor the trend in capital expenditure, as it decreased from both the prior quarter and the year-ago quarter, contributing to the improvement in free cash flow.