Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved substantially compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue was stable sequentially but lower than a year ago.
- Operating cash flow grew while capital expenditure remained modest, resulting in a higher free cash flow and an improved free cash flow margin. The conversion of revenue into cash from operations strengthened.
- Compared to the preceding quarter, operating cash flow and free cash flow were higher, with the margin expanding. Year-over-year, all cash flow metrics improved significantly, despite revenue being lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$857.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$269.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$275.4M
Cash generated by operations before capital spending.
CapEx
$6.0M
Capital spending and related asset purchases.
FCF margin
6.5%
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 | $4.2B | $267.9M | $2.7M | $265.3M | 6.3% |
| 2025-03-31 | $4.0B | $106.5M | $3.3M | $103.2M | 2.5% |
| 2025-06-30 | $4.1B | $227.1M | $7.3M | $219.8M | 5.3% |
| 2025-09-30 | $4.1B | $275.4M | $6.0M | $269.5M | 6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | 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 notably from both the prior quarter and the year-ago period, providing the primary lift to free cash flow. Capital expenditure remained low in comparison.
The rise in operating cash flow was the strongest observable factor in the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew while capital expenditure remained modest, resulting in a higher free cash flow and an improved free cash flow margin. The conversion of revenue into cash from operations strengthened.
Compared to the preceding quarter, operating cash flow and free cash flow were higher, with the margin expanding. Year-over-year, all cash flow metrics improved significantly, despite revenue being lower.
Monitor the trend in cash and cash equivalents, which decreased from the end of the prior fiscal year.