Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, supported by stronger operating cash flow even as revenue held roughly steady. The free cash flow margin widened, reflecting improved cash conversion from the same revenue base.
- Revenue was stable and near the level of both comparison quarters, while operating cash flow rose markedly, driving free cash flow higher. The resulting free cash flow margin improved, indicating a higher proportion of revenue converted to free cash.
- Compared with the prior quarter, free cash flow and its margin increased as operating cash flow strengthened on similar revenue. Versus the same quarter one year earlier, free cash flow and margin were higher despite slightly lower revenue, driven by stronger operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$953.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$270.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$283.3M
Cash generated by operations before capital spending.
CapEx
$13.0M
Capital spending and related asset purchases.
FCF margin
9.5%
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 | $2.7B | $342.6M | $13.2M | $329.5M | 12.4% |
| 2025-06-30 | $2.7B | $179.2M | $15.9M | $163.3M | 6.2% |
| 2025-09-30 | $2.9B | $201.4M | $11.1M | $190.3M | 6.6% |
| 2025-12-31 | $2.9B | $283.3M | $13.0M | $270.3M | 9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 Strength
Operating cash flow increased materially from both the immediately preceding quarter and the same quarter a year ago, while capital expenditure remained modest. This uplift in operating cash flow was the strongest observable driver of free cash flow expansion.
The higher operating cash flow directly lifted free cash flow and margin, even without revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable and near the level of both comparison quarters, while operating cash flow rose markedly, driving free cash flow higher. The resulting free cash flow margin improved, indicating a higher proportion of revenue converted to free cash.
Compared with the prior quarter, free cash flow and its margin increased as operating cash flow strengthened on similar revenue. Versus the same quarter one year earlier, free cash flow and margin were higher despite slightly lower revenue, driven by stronger operating cash flow.
Monitor the sustainability of the elevated operating cash flow, which was the primary driver of the free cash flow improvement in an otherwise flat revenue environment.