Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow improved substantially from both the prior quarter and the same quarter last year, driven by stronger operating cash flow. The free cash flow margin also increased, reflecting better cash conversion efficiency.
- Revenue growth supported an increase in operating cash flow, while capital expenditure remained relatively stable relative to revenue. As a result, free cash flow and free cash flow margin both improved, indicating effective cash generation from operations.
- Compared with the preceding quarter, free cash flow margin increased slightly, and year over year the margin improved markedly, reflecting a stronger cash conversion profile. Free cash flow in absolute terms also rose sequentially and compared with the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$954.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$273.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$282.2M
Cash generated by operations before capital spending.
CapEx
$8.5M
Capital spending and related asset purchases.
FCF margin
35.1%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $746.7M | $246.5M | $6.1M | $240.4M | 32.2% |
| 2024-12-31 | $766.5M | $202.8M | $8.1M | $194.7M | 25.4% |
| 2025-03-31 | $731.1M | $256.6M | $10.5M | $246.1M | 33.7% |
| 2025-06-30 | $780.4M | $282.2M | $8.5M | $273.7M | 35.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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.
Stronger Operating Cash Flow
Based on the filing, operating cash flow for the first nine months of fiscal year 2025 improved primarily due to higher cash received from customers and an increase in deferred revenue. This driver also supported the current quarter’s free cash flow growth.
This drove free cash flow margin to a higher level compared with both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth supported an increase in operating cash flow, while capital expenditure remained relatively stable relative to revenue. As a result, free cash flow and free cash flow margin both improved, indicating effective cash generation from operations.
Compared with the preceding quarter, free cash flow margin increased slightly, and year over year the margin improved markedly, reflecting a stronger cash conversion profile. Free cash flow in absolute terms also rose sequentially and compared with the year-ago period.
Monitor the sustainability of customer collections and deferred revenue trends, as they were cited as key contributors to operating cash flow improvement in the nine-month period.