Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose while capital expenditure declined, though it remained lower than the same quarter last year. The free cash flow margin strengthened from the prior quarter but weakened compared to the year-ago period.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased from the previous quarter, driving free cash flow higher, while capital expenditure decreased both sequentially and year-over-year.
- Compared to the immediately preceding quarter, free cash flow and margin improved as operating cash flow increased and capital expenditure decreased. Versus the same quarter one year earlier, free cash flow and margin were lower despite higher revenue, due to a larger decline in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$566.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$169.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$188.7M
Cash generated by operations before capital spending.
CapEx
$19.8M
Capital spending and related asset purchases.
FCF margin
17.0%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $995.2M | $286.1M | $23.0M | $263.1M | 26.4% |
| 2025-03-31 | $979.3M | $52.7M | $25.3M | $27.4M | 2.8% |
| 2025-06-30 | $1.0B | $128.7M | $21.5M | $107.2M | 10.6% |
| 2025-09-30 | $995.7M | $188.7M | $19.8M | $169.0M | 17.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 297.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Recovery
Operating cash flow increased from the prior quarter, which was the primary factor behind the improvement in free cash flow and margin. Capital expenditure also declined, further supporting free cash flow.
The sequential improvement in operating cash flow drove free cash flow higher and expanded the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased from the previous quarter, driving free cash flow higher, while capital expenditure decreased both sequentially and year-over-year.
Compared to the immediately preceding quarter, free cash flow and margin improved as operating cash flow increased and capital expenditure decreased. Versus the same quarter one year earlier, free cash flow and margin were lower despite higher revenue, due to a larger decline in operating cash flow.
Monitor operating cash flow trends, as the current level was lower than the year-ago quarter despite higher revenue.