Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the immediately preceding quarter, but operating cash flow and free cash flow improved substantially, leading to a notably higher free cash flow margin. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with the margin also improved.
- Revenue was unchanged from the prior quarter, while operating cash flow rose sharply and capital expenditure declined slightly, resulting in a much higher free cash flow. The free cash flow margin improved considerably as a result of this stronger cash conversion.
- Compared with the immediately preceding quarter, revenue was stable, but operating cash flow, free cash flow, and the free cash flow margin were all higher, while capital expenditure was lower. Relative to the same quarter one year ago, revenue, operating cash flow, free cash flow, and the margin were all higher, with capital expenditure also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$579.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$659.9M
Cash generated by operations before capital spending.
CapEx
$80.5M
Capital spending and related asset purchases.
FCF margin
47.9%
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 | $1.1B | $301.4M | $124.6M | $176.8M | 15.9% |
| 2025-03-31 | $1.0B | $183.8M | $87.0M | $96.8M | 9.3% |
| 2025-06-30 | $1.2B | $303.0M | $94.1M | $208.9M | 18.1% |
| 2025-09-30 | $1.2B | $659.9M | $80.5M | $579.4M | 47.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 204.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | 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 Improvement
The current quarter’s operating cash flow was notably higher than both the prior quarter and the year-ago quarter, while revenue remained unchanged from the prior quarter. This strong cash generation was the primary factor behind the increase in free cash flow and the margin expansion.
The improvement in operating cash flow directly drove a substantial increase in free cash flow and a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, while operating cash flow rose sharply and capital expenditure declined slightly, resulting in a much higher free cash flow. The free cash flow margin improved considerably as a result of this stronger cash conversion.
Compared with the immediately preceding quarter, revenue was stable, but operating cash flow, free cash flow, and the free cash flow margin were all higher, while capital expenditure was lower. Relative to the same quarter one year ago, revenue, operating cash flow, free cash flow, and the margin were all higher, with capital expenditure also lower.
Monitor the sustainability of operating cash flow, as the filing notes that cash from operations may fluctuate due to changes in operating results, working capital requirements, and capital deployment decisions.