Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
F5's first fiscal quarter saw revenue improve sequentially and year-over-year, but cash conversion weakened as operating cash flow declined. Free cash flow margin contracted compared to both the prior quarter and the same quarter last year.
- Operating cash flow fell relative to revenue, resulting in a lower free cash flow margin. Capital expenditure was stable in relation to revenue.
- Revenue was slightly higher than the preceding quarter and notably higher than the year-ago quarter. However, both operating cash flow and free cash flow were lower than in the prior quarter and the same quarter last year, leading to a weakened margin performance.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$861.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$149.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$159.2M
Cash generated by operations before capital spending.
CapEx
$9.7M
Capital spending and related asset purchases.
FCF margin
18.2%
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 | $731.1M | $256.6M | $10.5M | $246.1M | 33.7% |
| 2025-06-30 | $780.4M | $282.2M | $8.5M | $273.7M | 35.1% |
| 2025-09-30 | $810.1M | $208.1M | $16.1M | $191.9M | 23.7% |
| 2025-12-31 | $822.5M | $159.2M | $9.7M | $149.5M | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Weaker cash generation
Operating cash flow decreased while revenue grew, pulling down free cash flow margin. The company's filing notes that cash from operations was affected by payments made in excess of cash received from customers.
If the gap between cash receipts and payments persists, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell relative to revenue, resulting in a lower free cash flow margin. Capital expenditure was stable in relation to revenue.
Revenue was slightly higher than the preceding quarter and notably higher than the year-ago quarter. However, both operating cash flow and free cash flow were lower than in the prior quarter and the same quarter last year, leading to a weakened margin performance.
Monitor the trajectory of operating cash flow relative to revenue in upcoming quarters.