Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow relative to revenue. Capital expenditure remained minimal across all periods.
- Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow and free cash flow followed a similar pattern. The free cash flow margin strengthened sequentially and year-over-year, indicating a higher proportion of revenue converted into free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, yet the free cash flow margin was higher. Versus the same quarter last year, all metrics were higher, and the margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$939.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$947.0M
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
30.4%
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 | $2.6B | $310.0M | $3.0M | $307.0M | 12.0% |
| 2025-06-30 | $3.2B | $741.0M | $4.0M | $737.0M | 22.7% |
| 2025-09-30 | $3.7B | $1.1B | $5.0M | $1.1B | 29.8% |
| 2025-12-31 | $3.1B | $947.0M | $8.0M | $939.0M | 30.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $641.0M | 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 Efficiency
Operating cash flow declined less proportionally than revenue compared to the prior quarter, and grew more than revenue year-over-year, supporting a higher free cash flow margin in both comparisons.
This efficiency was the strongest observable driver of the improved free cash flow margin.
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 a year ago, while operating cash flow and free cash flow followed a similar pattern. The free cash flow margin strengthened sequentially and year-over-year, indicating a higher proportion of revenue converted into free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, yet the free cash flow margin was higher. Versus the same quarter last year, all metrics were higher, and the margin also improved.
Monitor the trend in operating cash flow relative to revenue, as it was the primary factor behind the margin improvement this quarter.