Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sequentially, lifting free cash flow and its margin, although both remained below the prior-year quarter. The increase in revenue provided the primary observable support for the quarter's cash generation.
- Revenue rose while operating cash flow increased proportionally, resulting in higher free cash flow and a slightly improved free cash flow margin. Capital expenditure declined, which also aided the conversion.
- Compared to the immediate prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Relative to the same quarter one year earlier, revenue was stable but operating cash flow, free cash flow, and the free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$170.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$209.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
6.3%
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 | $2.7B | $542.0M | $46.0M | $496.0M | 18.6% |
| 2024-12-31 | $2.6B | $723.0M | $84.0M | $639.0M | 24.7% |
| 2025-03-31 | $2.6B | $191.0M | $44.0M | $147.0M | 5.6% |
| 2025-06-30 | $2.7B | $209.0M | $39.0M | $170.0M | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 50.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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.
Revenue Growth
Revenue was higher than both the preceding quarter and the year-ago quarter. This provided the most observable basis for the sequential improvement in operating cash flow and free cash flow.
Higher revenue contributed to the sequential increase in free cash flow, despite operating cash flow margins not reaching the prior year level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased proportionally, resulting in higher free cash flow and a slightly improved free cash flow margin. Capital expenditure declined, which also aided the conversion.
Compared to the immediate prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Relative to the same quarter one year earlier, revenue was stable but operating cash flow, free cash flow, and the free cash flow margin were all lower.
Monitor the trend in receivables, as the filing notes changes in receivables driven by timing of collections affected cash flow from operations.