Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow both improved sequentially and year over year, leading to a higher free cash flow margin.
- Operating cash flow increased relative to revenue, as revenue declined modestly from the previous quarter while operating cash flow rose. Capital expenditure also increased, but free cash flow grew, resulting in a free cash flow margin that improved compared to both the prior quarter and the year-ago period.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$406.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$569.7M
Cash generated by operations before capital spending.
CapEx
$163.5M
Capital spending and related asset purchases.
FCF margin
13.5%
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 | $2.8B | $526.8M | $172.9M | $353.9M | 12.4% |
| 2025-03-31 | $2.9B | $557.1M | $144.8M | $412.3M | 14.3% |
| 2025-06-30 | $3.1B | $561.3M | $160.6M | $400.7M | 13.1% |
| 2025-09-30 | $3.0B | $569.7M | $163.5M | $406.2M | 13.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 106.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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 both sequentially and year over year, even as revenue declined slightly from the prior quarter. This improvement was the primary factor behind the higher free cash flow and margin.
The stronger operating cash flow provided a solid foundation for increased free cash flow despite higher capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, as revenue declined modestly from the previous quarter while operating cash flow rose. Capital expenditure also increased, but free cash flow grew, resulting in a free cash flow margin that improved compared to both the prior quarter and the year-ago period.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were higher.
Monitor the level of capital expenditure as it continues to rise, which could affect future free cash flow generation.