Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved substantially from the prior quarter, driven by a marked increase in operating cash flow. However, free cash flow was lower than the same quarter one year earlier, and the free cash flow margin weakened compared to that period.
- Revenue was similar to the prior quarter, but operating cash flow and free cash flow rose sharply, resulting in a higher free cash flow margin. Compared to the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were lower, leading to a weaker free cash flow margin.
- Compared to the prior quarter, free cash flow and operating cash flow both improved, while capital expenditure was slightly lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and capital expenditure was higher.
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
$448.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$475.5M
Cash generated by operations before capital spending.
CapEx
$26.7M
Capital spending and related asset purchases.
FCF margin
10.4%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $3.8B | $469.5M | $17.7M | $451.8M | 12.0% |
| 2025-03-31 | $3.9B | $108.5M | $26.1M | $82.3M | 2.1% |
| 2025-06-30 | $4.3B | $193.7M | $28.0M | $165.6M | 3.8% |
| 2025-09-30 | $4.3B | $475.5M | $26.7M | $448.8M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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 was substantially higher than the prior quarter, driving a significant increase in free cash flow despite similar revenue. This aligns with the company's stated focus on efficient conversion of operating income into cash.
The improved cash conversion provides greater flexibility for capital allocation priorities such as acquisitions, capital expenditures, and shareholder returns.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was similar to the prior quarter, but operating cash flow and free cash flow rose sharply, resulting in a higher free cash flow margin. Compared to the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were lower, leading to a weaker free cash flow margin.
Compared to the prior quarter, free cash flow and operating cash flow both improved, while capital expenditure was slightly lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and capital expenditure was higher.
Monitor capital expenditure levels as the company continues to invest in growth strategies, as noted in the filing.