Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose sharply from the prior quarter and from a year earlier, supported by a higher operating cash flow margin. Revenue was stable compared to the same quarter last year but increased sequentially.
- Operating cash flow increased more than revenue relative to both the prior quarter and the year-ago period, resulting in a meaningfully higher free cash flow margin. Capital expenditure was slightly higher than both comparison periods but remained modest relative to operating cash flow.
- Compared to the immediately preceding quarter, all cash flow metrics improved, with free cash flow margin rising from a lower level. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher while revenue was unchanged, resulting in an improved cash conversion rate.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$512.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$553.5M
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
35.6%
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 | $1.2B | $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% |
| 2025-12-31 | $1.4B | $553.5M | $41.0M | $512.5M | 35.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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 Expansion
Operating cash flow increased substantially both sequentially and year over year, outpacing the change in revenue. This was the primary factor behind the rise in free cash flow and margin.
The stronger cash generation provided a larger cushion for capital expenditure and other uses without relying on revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased more than revenue relative to both the prior quarter and the year-ago period, resulting in a meaningfully higher free cash flow margin. Capital expenditure was slightly higher than both comparison periods but remained modest relative to operating cash flow.
Compared to the immediately preceding quarter, all cash flow metrics improved, with free cash flow margin rising from a lower level. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher while revenue was unchanged, resulting in an improved cash conversion rate.
Monitor whether revenue growth can sustain the elevated operating cash flow levels, given that revenue was flat year over year.