Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved slightly from the prior quarter and the year-ago quarter, driven by a higher proportion of operating cash flow relative to revenue. Revenue declined from both comparison periods, but operating cash flow remained relatively stable, supporting free cash flow.
- Cash conversion was strong, with operating cash flow representing a high proportion of revenue, resulting in a free cash flow margin above sixty percent. Capital expenditure was modest and consistent with the prior quarter, contributing to the conversion efficiency.
- Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were also lower, but the free cash flow margin was slightly higher. Versus the same quarter last year, revenue was lower, operating cash flow was slightly lower, and free cash flow was slightly lower, yet the margin was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$949.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$968.1M
Cash generated by operations before capital spending.
CapEx
$18.4M
Capital spending and related asset purchases.
FCF margin
61.8%
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 | $1.5B | $1.0B | $26.2M | $991.7M | 65.0% |
| 2025-03-31 | $1.6B | $1.1B | $14.2M | $1.1B | 67.1% |
| 2025-06-30 | $1.7B | $1.1B | $18.4M | $1.0B | 61.5% |
| 2025-09-30 | $1.5B | $968.1M | $18.4M | $949.7M | 61.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Stable Cash Generation
Operating cash flow remained robust despite lower revenue, and capital expenditure was unchanged from the prior quarter. This combination kept free cash flow margin elevated relative to both comparison periods.
The company maintained a high free cash flow margin, indicating efficient cash conversion even in a period of lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was strong, with operating cash flow representing a high proportion of revenue, resulting in a free cash flow margin above sixty percent. Capital expenditure was modest and consistent with the prior quarter, contributing to the conversion efficiency.
Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were also lower, but the free cash flow margin was slightly higher. Versus the same quarter last year, revenue was lower, operating cash flow was slightly lower, and free cash flow was slightly lower, yet the margin was slightly higher.
Monitor the trend in revenue relative to operating cash flow, as a sustained decline in revenue without a corresponding decline in cash flow may indicate changing cash conversion dynamics.