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 increased compared to the prior quarter, while free cash flow margin improved slightly. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure remained stable relative to both periods, resulting in free cash flow that improved sequentially but weakened year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower, while capital expenditure was essentially stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$680.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$209.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$229.5M
Cash generated by operations before capital spending.
CapEx
$19.7M
Capital spending and related asset purchases.
FCF margin
19.6%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $945.6M | $219.0M | $24.1M | $194.9M | 20.6% |
| 2025-03-31 | $941.9M | $104.5M | $21.1M | $83.4M | 8.9% |
| 2025-06-30 | $1.0B | $209.7M | $17.7M | $192.0M | 18.8% |
| 2025-09-30 | $1.1B | $229.5M | $19.7M | $209.8M | 19.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | 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 growth
Revenue and operating cash flow both improved from the prior quarter, driving a higher free cash flow and a slightly improved free cash flow margin. This sequential strengthening is the most notable observable change in the current quarter.
The sequential improvement in free cash flow and margin indicates a stronger cash generation pattern relative to the 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 remained stable relative to both periods, resulting in free cash flow that improved sequentially but weakened year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower, while capital expenditure was essentially stable.
Monitor whether the year-over-year decline in free cash flow margin persists, as it reflects a weaker conversion of revenue into free cash flow compared to the prior year.