Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the year-ago quarter but higher than the prior quarter. The cash conversion margin weakened compared to the same quarter last year but improved from the preceding quarter.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow was higher than both the prior quarter and the year-ago quarter. Capital expenditure was higher than both comparison periods, resulting in free cash flow that was higher than the prior quarter but lower than the year-ago quarter. The free cash flow margin improved from the prior quarter but weakened from the year-ago quarter.
- Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was higher, free cash flow was higher, and free cash flow margin improved. Compared to the year-ago quarter, revenue was higher, operating cash flow was higher, capital expenditure was higher, free cash flow was lower, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$717.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$347.0M
Capital spending and related asset purchases.
FCF margin
43.2%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.5B | $420.0M | $197.0M | $223.0M | 14.6% |
| 2025-03-31 | $1.7B | $586.0M | $132.0M | $454.0M | 27.3% |
| 2025-06-30 | $1.9B | $563.0M | $245.0M | $318.0M | 16.8% |
| 2025-09-30 | $1.7B | $1.1B | $347.0M | $717.0M | 43.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 155.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.9% | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing a strong base for free cash flow despite higher capital expenditure.
Higher operating cash flow supported free cash flow improvement from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow was higher than both the prior quarter and the year-ago quarter. Capital expenditure was higher than both comparison periods, resulting in free cash flow that was higher than the prior quarter but lower than the year-ago quarter. The free cash flow margin improved from the prior quarter but weakened from the year-ago quarter.
Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was higher, free cash flow was higher, and free cash flow margin improved. Compared to the year-ago quarter, revenue was higher, operating cash flow was higher, capital expenditure was higher, free cash flow was lower, and free cash flow margin weakened.
Monitor capital expenditure trends, as spending was higher than both the prior quarter and the year-ago quarter, which directly reduced free cash flow.