Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined both sequentially and year-over-year, yet free cash flow and margin improved as operating cash flow rose and capital expenditure remained modest. The quarter ended with a higher free cash flow margin than the prior quarter and the same quarter last year.
- Revenue was lower than the preceding quarter and the year-ago quarter, while operating cash flow was higher than both periods. Capital expenditure was lower than the prior quarter but slightly higher than the year-ago quarter, resulting in free cash flow that was higher than both comparative periods and a free cash flow margin that improved.
- Compared with the immediately preceding quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Compared with the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$894.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$302.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$305.4M
Cash generated by operations before capital spending.
CapEx
$3.0M
Capital spending and related asset purchases.
FCF margin
7.7%
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 | $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% |
| 2025-12-31 | $3.9B | $305.4M | $3.0M | $302.4M | 7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 221.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$928.6M | 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 Improvement
Operating cash flow increased despite lower revenue, driving a higher free cash flow and an improved free cash flow margin. This was the strongest observable factor in the quarter.
The company generated more free cash flow per dollar of revenue compared to the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter and the year-ago quarter, while operating cash flow was higher than both periods. Capital expenditure was lower than the prior quarter but slightly higher than the year-ago quarter, resulting in free cash flow that was higher than both comparative periods and a free cash flow margin that improved.
Compared with the immediately preceding quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Compared with the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow and margin were higher.
Monitor the direction of capital expenditure relative to operating cash flow, as it has remained low and stable.