Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased sequentially, while capital expenditure decreased, resulting in a substantial improvement in free cash flow. Compared to the same quarter last year, revenue was higher but free cash flow was slightly lower, and the free cash flow margin declined.
- Operating cash flow rose relative to both the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but higher than a year ago. Consequently, free cash flow improved sequentially but was marginally lower than the year-ago period, and the free cash flow margin strengthened from the prior quarter but weakened year over year.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, with the free cash flow margin rising notably. Versus the same quarter one year earlier, revenue was higher, but free cash flow was slightly lower and the free cash flow margin contracted.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$567.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$655.2M
Cash generated by operations before capital spending.
CapEx
$87.7M
Capital spending and related asset purchases.
FCF margin
32.9%
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 | $1.7B | $477.6M | $97.6M | $380.0M | 22.9% |
| 2025-03-31 | $1.5B | $863.3M | $66.5M | $796.8M | 51.8% |
| 2025-06-30 | $1.6B | $451.9M | $167.8M | $284.1M | 17.4% |
| 2025-09-30 | $1.7B | $655.2M | $87.7M | $567.5M | 32.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $999.8M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved operating cash flow relative to capital expenditure
Operating cash flow increased from the prior quarter while capital expenditure declined, driving a higher free cash flow margin.
This shift enhanced overall cash generation, strengthening the company’s free cash flow position sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to both the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but higher than a year ago. Consequently, free cash flow improved sequentially but was marginally lower than the year-ago period, and the free cash flow margin strengthened from the prior quarter but weakened year over year.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, with the free cash flow margin rising notably. Versus the same quarter one year earlier, revenue was higher, but free cash flow was slightly lower and the free cash flow margin contracted.
Monitor deferred revenue trends, as the company’s filing highlights that deferred revenue represents a significant portion of free cash flow and future revenue recognition.