Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, while free cash flow margin strengthened slightly. Versus the same quarter last year, operating cash flow and free cash flow were lower, and the margin weakened.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased from both comparison periods, resulting in free cash flow that improved sequentially but declined year over year.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter last year, revenue was slightly higher, but operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$490.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$187.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$223.2M
Cash generated by operations before capital spending.
CapEx
$35.9M
Capital spending and related asset purchases.
FCF margin
17.9%
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 | $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% |
| 2025-12-31 | $1.0B | $223.2M | $35.9M | $187.3M | 17.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 137.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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.
Sequential revenue and cash flow improvement
Revenue and operating cash flow both increased from the prior quarter, leading to higher free cash flow and a slightly improved free cash flow margin. This sequential improvement is the strongest observable driver in the current quarter.
The sequential improvement in free cash flow and margin supports a stronger cash conversion profile relative to the immediate prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased from both comparison periods, resulting in free cash flow that improved sequentially but declined year over year.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter last year, revenue was slightly higher, but operating cash flow, free cash flow, and margin were all lower.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter, as it directly impacts free cash flow conversion.