Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow improved sequentially but declined from the prior year, while free cash flow margin narrowed in both comparisons.
- Revenue rose, operating cash flow was higher than the prior quarter but lower than the year-ago period, and capital expenditure increased. Free cash flow followed the same pattern as operating cash flow, and the free cash flow margin contracted relative to both prior periods.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, resulting in higher free cash flow, though the margin was lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, leading to lower free cash flow and a narrower margin.
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
$277.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$322.9M
Cash generated by operations before capital spending.
CapEx
$45.0M
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 | $2.1B | $375.1M | $36.4M | $338.7M | 16.3% |
| 2024-12-31 | $2.3B | $425.2M | $60.7M | $364.5M | 15.5% |
| 2025-03-31 | $2.0B | $303.3M | $36.5M | $266.8M | 13.1% |
| 2025-06-30 | $2.6B | $322.9M | $45.0M | $277.9M | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 conversion
Revenue growth supported a sequential increase in free cash flow, but the year-over-year decline in operating cash flow despite higher revenue indicates a change in cash conversion efficiency.
This shift in operating cash flow conversion contributed to a narrower free cash flow margin compared to both the prior quarter and the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, operating cash flow was higher than the prior quarter but lower than the year-ago period, and capital expenditure increased. Free cash flow followed the same pattern as operating cash flow, and the free cash flow margin contracted relative to both prior periods.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, resulting in higher free cash flow, though the margin was lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, leading to lower free cash flow and a narrower margin.
Monitor the trend in operating cash flow relative to revenue growth, as it weakened compared to the prior year despite higher revenue.