Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin improved compared to both periods.
- Operating cash flow grew relative to revenue, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. Consequently, free cash flow increased and the free cash flow margin strengthened.
- Compared to the prior quarter, revenue and operating cash flow increased, capital expenditure decreased, and free cash flow and margin rose. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, but free cash flow and margin still improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$409.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$558.0M
Cash generated by operations before capital spending.
CapEx
$149.0M
Capital spending and related asset purchases.
FCF margin
16.6%
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 | $2.4B | $951.0M | $167.0M | $784.0M | 32.8% |
| 2024-12-31 | $2.3B | $905.0M | $216.0M | $689.0M | 29.7% |
| 2025-03-31 | $2.2B | $515.0M | $178.0M | $337.0M | 15.3% |
| 2025-06-30 | $2.5B | $558.0M | $149.0M | $409.0M | 16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 57.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | 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 and Operating Cash Flow Improvement
Revenue growth supported higher operating cash flow, and capital expenditure was lower than the prior quarter, enabling free cash flow to rise. The free cash flow margin benefited from these factors.
This combination strengthened cash generation and improved the free cash flow margin relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew relative to revenue, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. Consequently, free cash flow increased and the free cash flow margin strengthened.
Compared to the prior quarter, revenue and operating cash flow increased, capital expenditure decreased, and free cash flow and margin rose. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, but free cash flow and margin still improved.
Monitor trends in accounts receivable and inventories, which increased due to higher sales and production planning as noted in the filing.