Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both increased compared to the prior quarter, though free cash flow margin improved. Versus the same quarter last year, operating cash flow rose while free cash flow was slightly higher, but the margin declined.
- Revenue grew and operating cash flow expanded at a similar pace, resulting in higher free cash flow. The free cash flow margin improved from the previous quarter but remained below the year-ago level, reflecting a change in the proportion of revenue converted to free cash flow.
- Compared to the immediately preceding quarter, all cash flow metrics including revenue, operating cash flow, and free cash flow were higher, and the margin improved. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was only slightly higher and the margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$452.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$468.0M
Cash generated by operations before capital spending.
CapEx
$16.0M
Capital spending and related asset purchases.
FCF margin
28.1%
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 | $1.2B | $361.0M | $20.0M | $341.0M | 28.8% |
| 2025-03-31 | $1.4B | $213.0M | $17.0M | $196.0M | 14.0% |
| 2025-06-30 | $1.3B | $325.0M | $15.0M | $310.0M | 24.1% |
| 2025-09-30 | $1.6B | $468.0M | $16.0M | $452.0M | 28.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 199.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.5B | 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 increased versus both the prior quarter and the year-ago quarter, providing a stronger base for free cash flow. Capital expenditure remained stable relative to the prior quarter and was lower than the year-ago level.
The higher operating cash flow was the primary observable driver of the increase in free cash flow sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew and operating cash flow expanded at a similar pace, resulting in higher free cash flow. The free cash flow margin improved from the previous quarter but remained below the year-ago level, reflecting a change in the proportion of revenue converted to free cash flow.
Compared to the immediately preceding quarter, all cash flow metrics including revenue, operating cash flow, and free cash flow were higher, and the margin improved. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was only slightly higher and the margin was lower.
Monitor the trend in free cash flow margin, as it weakened against the year-ago quarter despite higher revenue.