Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable compared to the same quarter last year, but weakened significantly from the prior quarter. Operating cash flow declined sharply from the preceding quarter, while capital expenditure increased, resulting in a lower free cash flow margin.
- Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow was lower than the prior quarter and similar to the year-ago level, while capital expenditure rose from the prior quarter but fell from a year ago. The resulting free cash flow margin weakened from the prior quarter and was stable compared to the same quarter last year.
- Compared to the prior quarter, free cash flow was lower and the margin weakened, driven by a lower operating cash flow despite higher revenue. Compared to the same quarter last year, free cash flow and margin were stable, with higher revenue and similar operating cash flow.
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
$192.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$294.0M
Cash generated by operations before capital spending.
CapEx
$101.9M
Capital spending and related asset purchases.
FCF margin
15.3%
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 | $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% |
| 2025-12-31 | $1.3B | $294.0M | $101.9M | $192.1M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.1% | 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 Decline
Operating cash flow decreased from the prior quarter, while revenue increased. This divergence is the strongest observable driver of the weakened free cash flow margin.
The lower operating cash flow relative to revenue reduced free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow was lower than the prior quarter and similar to the year-ago level, while capital expenditure rose from the prior quarter but fell from a year ago. The resulting free cash flow margin weakened from the prior quarter and was stable compared to the same quarter last year.
Compared to the prior quarter, free cash flow was lower and the margin weakened, driven by a lower operating cash flow despite higher revenue. Compared to the same quarter last year, free cash flow and margin were stable, with higher revenue and similar operating cash flow.
Monitor the trend in operating cash flow relative to revenue, as it declined from the prior quarter despite higher revenue.