Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared with the prior quarter. Versus the same quarter one year earlier, revenue was higher but free cash flow margin was lower.
- 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 margin that improved sequentially but weakened year over year.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Compared with the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow was higher, but free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$527.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$584.3M
Cash generated by operations before capital spending.
CapEx
$57.0M
Capital spending and related asset purchases.
FCF margin
26.4%
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 | $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% |
| 2025-12-31 | $2.0B | $584.3M | $57.0M | $527.3M | 26.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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.
Operating cash flow growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, supporting a sequential increase in free cash flow despite higher capital expenditure.
The improvement in operating cash flow was the strongest observable driver of the quarter's free cash flow performance.
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 margin that improved sequentially but weakened year over year.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Compared with the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow was higher, but free cash flow margin was lower.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.