Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the previous quarter but decreased from the same quarter last year. Operating cash flow and free cash flow both declined significantly compared to both prior periods, resulting in a much lower free cash flow margin.
- The company generated positive free cash flow as operating cash flow exceeded capital expenditure. However, the conversion rate weakened as revenue rose sequentially but operating cash flow fell, leading to a lower free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year earlier, revenue was lower and all cash flow metrics declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$166.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$219.7M
Cash generated by operations before capital spending.
CapEx
$52.9M
Capital spending and related asset purchases.
FCF margin
4.7%
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 | $3.7B | $826.5M | $77.0M | $749.5M | 20.1% |
| 2024-12-31 | $3.5B | $482.7M | $140.4M | $342.3M | 9.7% |
| 2025-03-31 | $3.2B | $535.5M | $42.6M | $492.9M | 15.2% |
| 2025-06-30 | $3.6B | $219.7M | $52.9M | $166.8M | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.9B | 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 Decline
Operating cash flow was lower than in both the prior quarter and the year-ago quarter, despite higher revenue sequentially. This was the primary factor behind the drop in free cash flow.
The reduction in operating cash flow constrained free cash flow generation and compressed the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated positive free cash flow as operating cash flow exceeded capital expenditure. However, the conversion rate weakened as revenue rose sequentially but operating cash flow fell, leading to a lower free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year earlier, revenue was lower and all cash flow metrics declined.
Monitor the trajectory of operating cash flow, which declined sharply from both prior periods.