Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from the prior quarter and from the same quarter last year, as operating cash flow decreased while revenue remained stable. The free cash flow margin weakened compared to both periods.
- Revenue was unchanged from the prior quarter, but operating cash flow fell, resulting in lower free cash flow and a narrower free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year ago.
- Compared to the immediately preceding quarter, free cash flow and margin both weakened, driven by lower operating cash flow despite stable revenue. Versus the same quarter one year earlier, free cash flow and margin were also lower, as operating cash flow declined while revenue increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$277.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$310.7M
Cash generated by operations before capital spending.
CapEx
$33.7M
Capital spending and related asset purchases.
FCF margin
20.7%
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 | $1.4B | $441.4M | $37.2M | $404.2M | 29.8% |
| 2025-03-31 | $1.2B | $487.0M | $23.1M | $464.0M | 37.3% |
| 2025-06-30 | $1.3B | $377.6M | $44.1M | $333.5M | 26.1% |
| 2025-09-30 | $1.3B | $310.7M | $33.7M | $277.0M | 20.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 from both the prior quarter and the year-ago quarter, while revenue was stable sequentially and higher year over year. This drove the reduction in free cash flow and margin.
The free cash flow margin contracted significantly compared to both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow fell, resulting in lower free cash flow and a narrower free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year ago.
Compared to the immediately preceding quarter, free cash flow and margin both weakened, driven by lower operating cash flow despite stable revenue. Versus the same quarter one year earlier, free cash flow and margin were also lower, as operating cash flow declined while revenue increased.
Monitor operating cash flow trends, as the decline was the primary factor behind the weakened free cash flow this quarter.