Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, with free cash flow turning positive. Compared to the same quarter last year, free cash flow margin was slightly lower despite higher revenue.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose significantly, and after higher capital expenditure, free cash flow was positive with a margin in the single digits.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved substantially, and free cash flow margin turned positive. Versus the same quarter one year earlier, free cash flow was slightly lower and margin weakened modestly, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$881.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$207.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$305.0M
Cash generated by operations before capital spending.
CapEx
$98.0M
Capital spending and related asset purchases.
FCF margin
9.0%
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 | $311.0M | $74.0M | $237.0M | 11.3% |
| 2024-12-31 | $2.3B | $575.0M | $100.0M | $475.0M | 21.1% |
| 2025-03-31 | $2.1B | $33.0M | $71.0M | -$38.0M | -1.8% |
| 2025-06-30 | $2.3B | $305.0M | $98.0M | $207.0M | 9.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$839.0M | 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 Recovery
Operating cash flow improved markedly from the prior quarter, driving the swing from negative to positive free cash flow. The filing notes that for the six-month period, operating cash flow was affected by receivables on long-term contracts, infrastructure payments, and tax payments, partially offset by higher earnings and inventory management.
This recovery was the primary factor behind the quarter's positive free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose significantly, and after higher capital expenditure, free cash flow was positive with a margin in the single digits.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved substantially, and free cash flow margin turned positive. Versus the same quarter one year earlier, free cash flow was slightly lower and margin weakened modestly, while revenue was higher.
Monitor capital expenditure, which increased from both the prior quarter and the year-ago quarter.