Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the year-ago period. Operating cash flow and free cash flow were lower than the prior quarter but higher than the year-ago quarter, resulting in a free cash flow margin that weakened sequentially but improved year-over-year.
- For the current quarter, revenue was higher than both comparison periods. Operating cash flow converted at a lower rate than the prior quarter, with capital expenditure slightly higher, leading to free cash flow that was lower sequentially but considerably higher than the year-ago quarter. The free cash flow margin reflected this pattern, weakening from the prior quarter but improving from the year-ago period.
- Compared to the immediately preceding quarter, operating cash flow decreased substantially while revenue increased slightly, causing free cash flow and margin to weaken. Compared to the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow significantly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$950.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$194.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$202.5M
Cash generated by operations before capital spending.
CapEx
$7.8M
Capital spending and related asset purchases.
FCF margin
47.5%
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 | $390.6M | $253.4M | $5.6M | $247.8M | 63.4% |
| 2024-12-31 | $395.4M | $231.5M | $9.5M | $222.0M | 56.1% |
| 2025-03-31 | $402.3M | $291.3M | $5.8M | $285.5M | 71.0% |
| 2025-06-30 | $409.9M | $202.5M | $7.8M | $194.7M | 47.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 Drop in Operating Cash Flow
Operating cash flow fell from the prior quarter while revenue grew, making it the largest observable change and the primary driver of the sequential decline in free cash flow and margin.
The free cash flow margin weakened from the prior quarter, reflecting the lower operating cash flow conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
For the current quarter, revenue was higher than both comparison periods. Operating cash flow converted at a lower rate than the prior quarter, with capital expenditure slightly higher, leading to free cash flow that was lower sequentially but considerably higher than the year-ago quarter. The free cash flow margin reflected this pattern, weakening from the prior quarter but improving from the year-ago period.
Compared to the immediately preceding quarter, operating cash flow decreased substantially while revenue increased slightly, causing free cash flow and margin to weaken. Compared to the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow significantly higher.
Monitor the company's liquidity sources and share repurchase authorization as disclosed in the management discussion, where total cash and marketable securities slightly decreased from year-end.