Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow improved significantly from the prior quarter, driven by a notable increase in operating cash flow and a slightly lower capital expenditure, but both revenue and free cash flow were lower than the same quarter one year earlier. The filing notes that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially.
- Cash conversion strengthened as operating cash flow rose substantially relative to the prior quarter, while capital expenditure remained stable. The resulting free cash flow margin improved from the prior quarter, though it remained below the year-ago level.
- Compared to the prior quarter, revenue was higher, and operating cash flow, free cash flow, and margin all improved. Compared to the same quarter last year, revenue was lower, and operating cash flow and free cash flow were lower, while the margin also weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$343.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$374.3M
Cash generated by operations before capital spending.
CapEx
$31.3M
Capital spending and related asset purchases.
FCF margin
5.7%
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 | $6.0B | $684.8M | $56.6M | $628.2M | 10.5% |
| 2024-12-31 | $6.0B | $13.8M | $27.0M | -$13.2M | -0.2% |
| 2025-03-31 | $5.8B | $133.3M | $31.9M | $101.5M | 1.8% |
| 2025-06-30 | $6.1B | $374.3M | $31.3M | $343.0M | 5.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 Improvement
Operating cash flow increased substantially from the prior quarter, far outpacing the rise in revenue, leading to a much higher free cash flow and margin.
This improvement was the primary factor behind the quarter's enhanced cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as operating cash flow rose substantially relative to the prior quarter, while capital expenditure remained stable. The resulting free cash flow margin improved from the prior quarter, though it remained below the year-ago level.
Compared to the prior quarter, revenue was higher, and operating cash flow, free cash flow, and margin all improved. Compared to the same quarter last year, revenue was lower, and operating cash flow and free cash flow were lower, while the margin also weakened.
Monitor whether the higher operating cash flow achieved this quarter can be maintained, as it decreased from the level reported in the same period last year.