Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply as operating cash flow rose while capital spending declined, lifting free cash flow and margin. Revenue was higher than both the prior quarter and the same quarter last year.
- Operating cash flow increased substantially relative to revenue, and capital expenditure was lower, resulting in a higher free cash flow and a stronger free cash flow margin.
- Compared with the immediately preceding quarter, revenue was higher and operating cash flow improved, while capital spending was lower, leading to a much higher free cash flow and margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow increased, capital expenditure was lower, and free cash flow and margin were both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$571.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$240.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$255.4M
Cash generated by operations before capital spending.
CapEx
$14.8M
Capital spending and related asset purchases.
FCF margin
25.5%
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 | $912.4M | $221.9M | $30.6M | $191.3M | 21.0% |
| 2025-03-31 | $963.9M | $38.7M | $21.3M | $17.4M | 1.8% |
| 2025-06-30 | $1.0B | $139.6M | $17.1M | $122.5M | 12.1% |
| 2025-09-30 | $942.5M | $255.4M | $14.8M | $240.6M | 25.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 182.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$33.1M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow generation
Operating cash flow was significantly higher than both the prior quarter and the same quarter last year, while capital expenditure was lower, driving a notable improvement in free cash flow and margin.
This combination of higher operating cash flow and lower capital spending was the strongest observable driver of the quarter's cash conversion improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially relative to revenue, and capital expenditure was lower, resulting in a higher free cash flow and a stronger free cash flow margin.
Compared with the immediately preceding quarter, revenue was higher and operating cash flow improved, while capital spending was lower, leading to a much higher free cash flow and margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow increased, capital expenditure was lower, and free cash flow and margin were both higher.
Monitor the allowance for credit losses, which increased from the prior year-end, as it may affect future cash conversion if credit loss expectations change.