Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened year-over-year but weakened slightly from the preceding quarter.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin was positive, indicating that a portion of revenue was converted into free cash flow after covering capital spending.
- Compared to the prior quarter, revenue and operating cash flow were higher, while capital expenditure also increased, leading to a slightly higher free cash flow but a lower free cash flow margin. Compared to the same quarter one year earlier, all metrics improved significantly, with operating cash flow and free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$692.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$233.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$388.5M
Cash generated by operations before capital spending.
CapEx
$155.4M
Capital spending and related asset purchases.
FCF margin
16.3%
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 | $1.1B | $547.2M | $182.6M | $364.6M | 33.9% |
| 2025-06-30 | $1.3B | -$9.0M | $119.6M | -$128.7M | -9.7% |
| 2025-09-30 | $1.3B | $355.6M | $132.2M | $223.4M | 17.1% |
| 2025-12-31 | $1.4B | $388.5M | $155.4M | $233.1M | 16.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -56.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | 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 from the prior quarter and turning sharply positive from a negative level one year ago. This improvement directly supported the increase in free cash flow.
Higher operating cash flow enabled positive free cash flow despite a rise in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin was positive, indicating that a portion of revenue was converted into free cash flow after covering capital spending.
Compared to the prior quarter, revenue and operating cash flow were higher, while capital expenditure also increased, leading to a slightly higher free cash flow but a lower free cash flow margin. Compared to the same quarter one year earlier, all metrics improved significantly, with operating cash flow and free cash flow turning from negative to positive.
Monitor the trend in capital expenditure relative to operating cash flow, as its increase this quarter outpaced the rise in operating cash flow, slightly compressing the free cash flow margin.