Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply versus both the prior quarter and the same quarter last year, driven by a substantial increase in operating cash flow. Free cash flow margin expanded significantly as revenue grew while capital expenditure remained relatively stable.
- Revenue rose compared to the prior quarter and the same quarter a year ago, while operating cash flow increased at a faster pace, resulting in higher free cash flow and a stronger free cash flow margin. Capital expenditure was slightly lower than the prior quarter and also lower than the year-ago quarter, further supporting cash conversion.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, all metrics improved markedly, with operating cash flow and free cash flow showing substantial increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$611.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$671.0M
Cash generated by operations before capital spending.
CapEx
$59.3M
Capital spending and related asset purchases.
FCF margin
18.3%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $3.1B | $392.4M | $53.4M | $339.0M | 11.0% |
| 2025-06-30 | $3.2B | $265.5M | $59.9M | $205.6M | 6.5% |
| 2025-09-30 | $3.2B | $505.0M | $62.9M | $442.1M | 13.7% |
| 2025-12-31 | $3.4B | $671.0M | $59.3M | $611.7M | 18.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 271.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Operating Cash Flow Strength
Operating cash flow was the strongest observable driver, rising significantly from both the prior quarter and the year-ago quarter. This increase directly lifted free cash flow and margin, with capital expenditure showing only a modest change.
The higher operating cash flow was the primary factor behind the improved free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to the prior quarter and the same quarter a year ago, while operating cash flow increased at a faster pace, resulting in higher free cash flow and a stronger free cash flow margin. Capital expenditure was slightly lower than the prior quarter and also lower than the year-ago quarter, further supporting cash conversion.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, all metrics improved markedly, with operating cash flow and free cash flow showing substantial increases.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future periods.