Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, with free cash flow turning positive and the margin expanding significantly. Compared to the same quarter last year, free cash flow and margin were lower despite higher revenue.
- Revenue increased while operating cash flow rose substantially, leading to a large positive free cash flow and a high free cash flow margin. Capital expenditure was slightly lower than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved markedly. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$929.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$21.6M
Capital spending and related asset purchases.
FCF margin
52.1%
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 | $1.0B | -$73.0M | $16.4M | -$89.4M | -8.8% |
| 2025-06-30 | $964.5M | $36.1M | $23.9M | $12.2M | 1.3% |
| 2025-09-30 | $1.4B | $8.1M | $22.0M | -$13.9M | -1.0% |
| 2025-12-31 | $2.0B | $1.0B | $21.6M | $1.0B | 52.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 212.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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 Surge
Operating cash flow increased substantially from the prior quarter, driving the turnaround from negative to positive free cash flow. This was the strongest observable factor in the quarter's cash conversion improvement.
The large operating cash flow more than offset capital expenditure, resulting in a high free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose substantially, leading to a large positive free cash flow and a high free cash flow margin. Capital expenditure was slightly lower than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved markedly. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.