Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially and year-over-year.
- Operating cash flow as a proportion of revenue was higher than the prior quarter and the year-ago quarter, supporting a free cash flow margin that also improved over both periods. Capital expenditure was higher than both comparison periods but remained modest relative to operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$32.5M
Capital spending and related asset purchases.
FCF margin
66.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $1.6B | $1.1B | $32.5M | $1.1B | 66.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, outpacing the growth in revenue. This was the strongest observable driver of the improvement in free cash flow and margin.
Higher operating cash flow directly supported a higher free cash flow and an improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter and the year-ago quarter, supporting a free cash flow margin that also improved over both periods. Capital expenditure was higher than both comparison periods but remained modest relative to operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher and the margin strengthened.
Monitor the trend in capital expenditure, which was higher in the current quarter compared to both the prior quarter and the year-ago quarter.