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 significantly compared to both the prior quarter and the same quarter last year. Revenue was stable year-over-year but higher than the preceding quarter, while operating cash flow grew substantially.
- Revenue was unchanged from a year earlier and higher than the prior quarter, while operating cash flow rose sharply, resulting in a much higher free cash flow and margin. Capital expenditure was lower than the year-ago quarter but slightly higher than the prior quarter, further supporting the cash conversion improvement.
- Compared to the previous quarter, revenue and operating cash flow were higher, and free cash flow and margin improved markedly. Versus the same quarter last year, revenue was stable, while operating cash flow, free cash flow, and margin were all higher, with capital expenditure slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$778.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$269.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$311.0M
Cash generated by operations before capital spending.
CapEx
$42.0M
Capital spending and related asset purchases.
FCF margin
16.1%
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 | $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% |
| 2025-12-31 | $1.7B | $311.0M | $42.0M | $269.0M | 16.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 171.3% | 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 improvement
Operating cash flow rose substantially from the prior quarter and from the same quarter last year, while revenue was stable year-over-year. This drove a significant increase in free cash flow and margin.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from a year earlier and higher than the prior quarter, while operating cash flow rose sharply, resulting in a much higher free cash flow and margin. Capital expenditure was lower than the year-ago quarter but slightly higher than the prior quarter, further supporting the cash conversion improvement.
Compared to the previous quarter, revenue and operating cash flow were higher, and free cash flow and margin improved markedly. Versus the same quarter last year, revenue was stable, while operating cash flow, free cash flow, and margin were all higher, with capital expenditure slightly lower.
Monitor whether the higher operating cash flow level can be sustained given the unchanged revenue compared to a year ago.