Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially despite a slight decline from the prior-year quarter, as operating cash flow rose quarter over quarter but remained lower year over year. The free cash flow margin strengthened versus the preceding quarter but weakened compared with the same quarter one year earlier.
- Revenue increased both sequentially and year over year, while operating cash flow grew from the prior quarter but fell from the prior year; capital expenditure decreased quarter over quarter and year over year. The result was a higher free cash flow and margin compared with the preceding quarter, yet a lower free cash flow and margin compared with the same quarter one year earlier.
- Compared with the immediately preceding quarter, free cash flow and margin improved, driven primarily by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, both free cash flow and margin declined, as operating cash flow decreased more than capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$420.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$440.9M
Cash generated by operations before capital spending.
CapEx
$20.9M
Capital spending and related asset purchases.
FCF margin
22.2%
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 | $1.8B | $550.0M | $51.7M | $498.3M | 28.3% |
| 2025-03-31 | $1.7B | $417.5M | $23.1M | $394.5M | 22.8% |
| 2025-06-30 | $1.8B | $359.1M | $29.3M | $329.8M | 18.5% |
| 2025-09-30 | $1.9B | $440.9M | $20.9M | $420.0M | 22.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow improvement
Operating cash flow rose from the prior quarter, contributing directly to a stronger free cash flow and margin. This improvement occurred even as revenue grew, suggesting a more efficient conversion of revenue into cash relative to the preceding period.
The sequential increase in operating cash flow is the strongest observable driver of the quarter-over-quarter improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased both sequentially and year over year, while operating cash flow grew from the prior quarter but fell from the prior year; capital expenditure decreased quarter over quarter and year over year. The result was a higher free cash flow and margin compared with the preceding quarter, yet a lower free cash flow and margin compared with the same quarter one year earlier.
Compared with the immediately preceding quarter, free cash flow and margin improved, driven primarily by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, both free cash flow and margin declined, as operating cash flow decreased more than capital expenditure.
Monitor the trajectory of operating cash flow, which weakened year over year despite revenue growth, as indicated by higher working capital investments in the filing context.