Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin weakened slightly from the prior quarter and more notably from the year-ago quarter.
- Operating cash flow increased relative to both the prior quarter and the year-ago quarter, while capital expenditure rose compared to both periods. The resulting free cash flow was higher than the year-ago quarter but lower than the prior quarter, with the free cash flow margin declining sequentially and year-over-year.
- Compared to the prior quarter, revenue decreased and free cash flow was lower despite higher operating cash flow, driven by a notable increase in capital expenditure. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, but the free cash flow margin was lower due to a larger rise in capital expenditure relative to revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$685.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$200.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$240.1M
Cash generated by operations before capital spending.
CapEx
$39.6M
Capital spending and related asset purchases.
FCF margin
19.4%
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 | $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% |
| 2025-12-31 | $1.0B | $240.1M | $39.6M | $200.5M | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 improved sequentially and year-over-year, providing the primary support for free cash flow generation despite higher capital spending.
Higher operating cash flow partially offset the drag from increased capital expenditure on free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to both the prior quarter and the year-ago quarter, while capital expenditure rose compared to both periods. The resulting free cash flow was higher than the year-ago quarter but lower than the prior quarter, with the free cash flow margin declining sequentially and year-over-year.
Compared to the prior quarter, revenue decreased and free cash flow was lower despite higher operating cash flow, driven by a notable increase in capital expenditure. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, but the free cash flow margin was lower due to a larger rise in capital expenditure relative to revenue.
Monitor the trend in capital expenditure, which increased substantially from both the prior quarter and the year-ago quarter.