Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared with both the preceding quarter and the same quarter a year ago, driven by a substantial rise in operating cash flow. The free cash flow margin also expanded notably during the period.
- Revenue increased from the prior quarter, while operating cash flow rose at a faster pace. With capital expenditure staying moderate, free cash flow advanced sharply, resulting in a stronger free cash flow margin.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, leading to a marked improvement in free cash flow and margin. Versus the same quarter one year earlier, all key metrics improved, with operating cash flow and free cash flow both increasing.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$798.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$517.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$553.3M
Cash generated by operations before capital spending.
CapEx
$35.3M
Capital spending and related asset purchases.
FCF margin
21.1%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.9B | $210.5M | $40.7M | $169.8M | 9.1% |
| 2025-03-31 | $1.8B | -$88.0M | $22.2M | -$110.2M | -6.0% |
| 2025-06-30 | $2.2B | $252.5M | $31.3M | $221.2M | 10.2% |
| 2025-09-30 | $2.5B | $553.3M | $35.3M | $517.9M | 21.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 177.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $724.5M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow growth
Operating cash flow rose sharply compared with both the prior quarter and the year-ago quarter, outpacing revenue growth and driving a substantial increase in free cash flow.
Free cash flow and its margin reached higher levels, reflecting improved cash conversion from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, while operating cash flow rose at a faster pace. With capital expenditure staying moderate, free cash flow advanced sharply, resulting in a stronger free cash flow margin.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, leading to a marked improvement in free cash flow and margin. Versus the same quarter one year earlier, all key metrics improved, with operating cash flow and free cash flow both increasing.
Monitor the trend in operating cash flow relative to revenue growth, given the company’s capital-light model that relies on efficient working capital management.