Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow both improved compared to both the prior quarter and the same quarter last year, driven by stronger cash conversion despite stable revenue. The free cash flow margin expanded as operating cash flow grew while capital expenditure remained roughly stable.
- Revenue was stable sequentially and slightly higher year-over-year. Operating cash flow was significantly higher than both periods, leading to a notable improvement in free cash flow and margin. Capital expenditure was slightly lower than the prior quarter and similar to the year-ago period, contributing to the stronger conversion.
- Compared to the preceding quarter, free cash flow and margin improved substantially as operating cash flow rose and capex fell. Versus the same quarter one year ago, all cash metrics strengthened, with operating cash flow and free cash flow both higher and margin wider.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$965.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$326.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$386.9M
Cash generated by operations before capital spending.
CapEx
$60.3M
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.8B | $282.8M | $60.2M | $222.6M | 12.2% |
| 2025-03-31 | $2.0B | $262.2M | $55.7M | $206.5M | 10.5% |
| 2025-06-30 | $2.1B | $278.6M | $69.3M | $209.3M | 10.1% |
| 2025-09-30 | $2.1B | $386.9M | $60.3M | $326.6M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $93.1M | 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
The main driver of the quarter’s free cash flow improvement was the higher operating cash flow, which increased significantly from both the prior quarter and the year-ago period. This was supported by a reduction in tax payments and working capital turning into a modest cash source.
The stronger operating cash flow enabled higher free cash flow and an expansion in free cash flow margin, reinforcing cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and slightly higher year-over-year. Operating cash flow was significantly higher than both periods, leading to a notable improvement in free cash flow and margin. Capital expenditure was slightly lower than the prior quarter and similar to the year-ago period, contributing to the stronger conversion.
Compared to the preceding quarter, free cash flow and margin improved substantially as operating cash flow rose and capex fell. Versus the same quarter one year ago, all cash metrics strengthened, with operating cash flow and free cash flow both higher and margin wider.
Monitor the trend in operating cash flow as a percentage of net income given the context of tax payment changes and working capital dynamics.