Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly compared to both the prior quarter and the same quarter last year, driven by a sharp increase in operating cash flow. Capital expenditure was lower sequentially and year-over-year.
- Revenue was higher than both the prior quarter and the year-ago period, while operating cash flow rose substantially, leading to a higher free cash flow and margin. Capital expenditure was lower, further supporting cash conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved, while capital expenditure decreased. Versus the same quarter one year earlier, the same metrics showed improvement, with operating cash flow and free cash flow higher and margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$318.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$324.8M
Cash generated by operations before capital spending.
CapEx
$6.3M
Capital spending and related asset purchases.
FCF margin
18.6%
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 | $1.8B | $360.4M | $11.5M | $348.9M | 19.3% |
| 2025-06-30 | $2.1B | $699.7M | $15.6M | $684.1M | 33.1% |
| 2025-09-30 | $1.6B | $42.3M | $15.2M | $27.1M | 1.7% |
| 2025-12-31 | $1.7B | $324.8M | $6.3M | $318.5M | 18.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.8B | 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 Increase
Operating cash flow was higher than both the prior quarter and the same quarter last year, directly boosting free cash flow and margin.
The rise in operating cash flow was the primary factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago period, while operating cash flow rose substantially, leading to a higher free cash flow and margin. Capital expenditure was lower, further supporting cash conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved, while capital expenditure decreased. Versus the same quarter one year earlier, the same metrics showed improvement, with operating cash flow and free cash flow higher and margin strengthened.
Monitor the level of cash and cash equivalents, which decreased from the prior fiscal year-end as noted in the filing.