Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened significantly this quarter as free cash flow margin contracted versus both the prior quarter and the same quarter last year. Revenue was lower while operating cash flow declined even more sharply, leading to a reduced free cash flow generation.
- With revenue lower, operating cash flow decreased and capital expenditure was relatively stable, resulting in a substantially lower free cash flow and a narrower free cash flow margin compared to the previous quarter and the year-ago quarter.
- Compared to the prior quarter, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were also lower, though capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$636.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$57.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$93.0M
Cash generated by operations before capital spending.
CapEx
$36.0M
Capital spending and related asset purchases.
FCF margin
4.0%
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 | $1.7B | $180.0M | $53.0M | $127.0M | 7.5% |
| 2025-03-31 | $1.7B | $286.0M | $53.0M | $233.0M | 14.0% |
| 2025-06-30 | $2.0B | $294.0M | $75.0M | $219.0M | 11.0% |
| 2025-09-30 | $1.4B | $93.0M | $36.0M | $57.0M | 4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 Contraction
Operating cash flow was markedly lower than both the prior quarter and the year-ago quarter, even as capital expenditure remained relatively stable. This contraction drove the decline in free cash flow and the drop in free cash flow margin.
The lower operating cash flow was the strongest observable driver of weaker cash generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue lower, operating cash flow decreased and capital expenditure was relatively stable, resulting in a substantially lower free cash flow and a narrower free cash flow margin compared to the previous quarter and the year-ago quarter.
Compared to the prior quarter, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were also lower, though capital expenditure was slightly lower.
Monitor whether operating cash flow can recover closer to historical levels, as its decline was the primary factor behind weaker free cash flow margin.