Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year. Operating cash flow improved sequentially but was lower year-over-year, while free cash flow margin strengthened compared to the prior quarter but weakened versus the year-ago period.
- Operating cash flow as a proportion of revenue improved from the prior quarter, supporting a higher free cash flow margin. Capital expenditure was slightly lower than both comparison periods, contributing to the sequential cash conversion improvement.
- Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$461.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$547.7M
Cash generated by operations before capital spending.
CapEx
$85.8M
Capital spending and related asset purchases.
FCF margin
11.7%
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 | $3.8B | $373.5M | $99.7M | $273.8M | 7.2% |
| 2025-03-31 | $3.7B | $132.3M | $100.0M | $32.4M | 0.9% |
| 2025-06-30 | $4.2B | $341.0M | $88.7M | $252.3M | 6.0% |
| 2025-09-30 | $3.9B | $547.7M | $85.8M | $461.9M | 11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 377.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Recovery
Operating cash flow increased from the prior quarter despite lower revenue, driving a higher free cash flow margin. This was the strongest observable sequential improvement among the supplied metrics.
The improvement in operating cash flow was the primary factor behind the sequential rise in free cash flow and margin.
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 improved from the prior quarter, supporting a higher free cash flow margin. Capital expenditure was slightly lower than both comparison periods, contributing to the sequential cash conversion improvement.
Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor the trajectory of operating cash flow relative to revenue, as the sequential improvement occurred despite lower sales.