Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow margin strengthened sequentially but was slightly lower than the year-ago level.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in strong free cash flow. The free cash flow margin was robust, supported by the relationship between revenue and operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow was higher but the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$318.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$327.1M
Cash generated by operations before capital spending.
CapEx
$8.9M
Capital spending and related asset purchases.
FCF margin
33.4%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $761.6M | $271.5M | $8.7M | $262.8M | 34.5% |
| 2025-06-30 | $826.8M | $200.1M | $15.2M | $184.9M | 22.4% |
| 2025-09-30 | $885.7M | $251.5M | $16.8M | $234.7M | 26.5% |
| 2025-12-31 | $953.2M | $327.1M | $8.9M | $318.2M | 33.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 683.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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 substantially from the prior quarter and was also higher than the year-ago quarter, supporting a strong free cash flow result. Capital expenditure remained relatively stable across periods.
The higher operating cash flow was the primary factor behind the sequential improvement in free cash flow and 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 exceeded capital expenditure by a wide margin, resulting in strong free cash flow. The free cash flow margin was robust, supported by the relationship between revenue and operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow was higher but the free cash flow margin was lower.
Monitor the free cash flow margin trajectory as it weakened relative to the year-ago quarter despite higher absolute free cash flow.