Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose compared to the same quarter one year earlier, supported by higher revenue and operating cash flow. However, the free cash flow margin weakened sharply from the immediately preceding quarter due to a larger decline in operating cash flow relative to revenue.
- Operating cash flow was lower than the prior quarter but higher than a year earlier, while capital expenditure decreased from the previous quarter and increased year over year. The resulting free cash flow margin of sixteen point seven percent weakened from the prior quarter's forty-three point two percent but improved from the fourteen point six percent margin of the same quarter last year.
- Compared with the immediately preceding quarter, revenue increased but free cash flow declined significantly due to a larger proportion of operating cash flow being consumed by working capital or other operating items. Relative to the same quarter one year earlier, both revenue and free cash flow improved, with the free cash flow margin rising slightly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$313.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$539.0M
Cash generated by operations before capital spending.
CapEx
$226.0M
Capital spending and related asset purchases.
FCF margin
16.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $1.9B | $539.0M | $226.0M | $313.0M | 16.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.1% | 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.
Revenue growth from a year ago
Revenue in the current quarter was higher than both the prior quarter and the same quarter one year earlier. This increase provided a broader base from which operating cash flow and free cash flow could be generated.
Higher revenue was the strongest observable driver supporting the year-over-year improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than a year earlier, while capital expenditure decreased from the previous quarter and increased year over year. The resulting free cash flow margin of sixteen point seven percent weakened from the prior quarter's forty-three point two percent but improved from the fourteen point six percent margin of the same quarter last year.
Compared with the immediately preceding quarter, revenue increased but free cash flow declined significantly due to a larger proportion of operating cash flow being consumed by working capital or other operating items. Relative to the same quarter one year earlier, both revenue and free cash flow improved, with the free cash flow margin rising slightly.
Monitor the sustainability of operating cash flow relative to revenue, as the current quarter's conversion rate dropped materially from the preceding period.