Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from the prior quarter and the year-ago quarter, driven by higher operating cash flow. Revenue was stable sequentially and higher year over year.
- Operating cash flow rose sharply compared to both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This led to a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and free cash flow margin both improved, with operating cash flow higher and capital expenditure essentially unchanged. Versus the same quarter last year, free cash flow and margin also improved, supported by higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$999.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$437.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$559.9M
Cash generated by operations before capital spending.
CapEx
$122.0M
Capital spending and related asset purchases.
FCF margin
28.3%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.4B | $324.8M | $118.9M | $205.9M | 14.5% |
| 2025-03-31 | $1.4B | $223.9M | $107.2M | $116.7M | 8.1% |
| 2025-06-30 | $1.5B | $361.1M | $122.2M | $238.9M | 15.5% |
| 2025-09-30 | $1.5B | $559.9M | $122.0M | $437.9M | 28.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 273.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | 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 increased notably from both the prior quarter and the year-ago quarter, while capital expenditure remained stable. This combination drove a substantial improvement in free cash flow and margin.
The higher operating cash flow was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose sharply compared to both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This led to a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow and free cash flow margin both improved, with operating cash flow higher and capital expenditure essentially unchanged. Versus the same quarter last year, free cash flow and margin also improved, supported by higher revenue and operating cash flow.
Monitor the trajectory of operating cash flow, as it was the primary driver of the free cash flow improvement this quarter.