Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply from both the prior quarter and the year-ago quarter, driven by a significant drop in operating cash flow. Revenue also decreased compared to both periods, while capital expenditure remained relatively stable.
- Operating cash flow as a proportion of revenue weakened markedly, falling from the prior quarter and the year-ago quarter. With capital expenditure little changed, the conversion from operating cash flow to free cash flow was lower, resulting in a much reduced free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue and operating cash flow were lower, while capital expenditure was slightly lower, and free cash flow and free cash flow margin also declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$853.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$106.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$194.8M
Cash generated by operations before capital spending.
CapEx
$88.1M
Capital spending and related asset purchases.
FCF margin
3.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $3.4B | $194.8M | $88.1M | $106.7M | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 339.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 Decline
Operating cash flow decreased substantially from both the prior quarter and the year-ago quarter, despite a smaller decline in revenue. This was the strongest observable driver of the lower free cash flow.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow 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 weakened markedly, falling from the prior quarter and the year-ago quarter. With capital expenditure little changed, the conversion from operating cash flow to free cash flow was lower, resulting in a much reduced free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue and operating cash flow were lower, while capital expenditure was slightly lower, and free cash flow and free cash flow margin also declined.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow generation.