Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from the prior quarter and was slightly lower than the same quarter last year, as revenue and operating cash flow decreased while capital expenditure increased. The free cash flow margin weakened compared with both prior periods.
- Operating cash flow as a proportion of revenue decreased from the prior quarter and the year-ago quarter, while capital expenditure rose, leading to a lower free cash flow conversion rate.
- Compared with the immediately preceding quarter, revenue was lower and operating cash flow was notably lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was higher but operating cash flow was slightly lower, and capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$769.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$219.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$223.7M
Cash generated by operations before capital spending.
CapEx
$4.2M
Capital spending and related asset purchases.
FCF margin
42.6%
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 | $440.0M | $194.0M | $841000 | $193.2M | 43.9% |
| 2025-03-31 | $498.7M | $74.9M | $2.1M | $72.8M | 14.6% |
| 2025-06-30 | $536.4M | $286.2M | $1.8M | $284.4M | 53.0% |
| 2025-09-30 | $515.8M | $223.7M | $4.2M | $219.5M | 42.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 141.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and Operating Cash Flow Weaken
Revenue decreased from the prior quarter and operating cash flow fell more sharply, while capital expenditure rose. This combination drove a larger proportional decline in free cash flow compared with both prior periods.
The weakened cash generation and higher spending reduced the quarter's free cash flow margin below both the prior quarter and the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue decreased from the prior quarter and the year-ago quarter, while capital expenditure rose, leading to a lower free cash flow conversion rate.
Compared with the immediately preceding quarter, revenue was lower and operating cash flow was notably lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was higher but operating cash flow was slightly lower, and capital expenditure increased.
Monitor whether capital expenditure remains elevated in subsequent quarters, as it contributed to the decline in free cash flow.