Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved markedly in the current quarter, driven by higher revenue and stronger operating cash flow. Free cash flow and margin both increased compared to the immediately preceding quarter and the same quarter one year earlier.
- Revenue was higher than both the prior quarter and the year-ago period. Operating cash flow rose substantially, while capital expenditure was slightly lower than the previous quarter but higher than a year earlier. The combination resulted in a higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow showing a notable increase. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$808.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$871.0M
Cash generated by operations before capital spending.
CapEx
$63.0M
Capital spending and related asset purchases.
FCF margin
23.4%
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 | $2.9B | $518.0M | $32.0M | $486.0M | 16.9% |
| 2025-03-31 | $3.0B | $635.0M | $74.0M | $561.0M | 18.5% |
| 2025-06-30 | $3.3B | $504.0M | $66.0M | $438.0M | 13.3% |
| 2025-09-30 | $3.4B | $871.0M | $63.0M | $808.0M | 23.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 331.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Strength
Operating cash flow in the current quarter was higher than both the immediately preceding quarter and the same quarter one year earlier, providing the primary support for the increase in free cash flow.
This improvement in operating cash flow drove a higher free cash flow margin, reflecting stronger cash generation from revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago period. Operating cash flow rose substantially, while capital expenditure was slightly lower than the previous quarter but higher than a year earlier. The combination resulted in a higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow showing a notable increase. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was also higher.
Monitor the trend in capital expenditure, which was higher than the year-ago level despite being slightly lower than the prior quarter.