Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year. Free cash flow improved year-over-year but was relatively stable sequentially, supported by lower capital spending.
- Operating cash flow decreased slightly from the prior quarter but increased substantially from a year ago. With capital expenditure markedly lower than both comparisons, free cash flow margin narrowed sequentially but widened significantly year-over-year.
- Sequentially, revenue increased while free cash flow held steady, as lower capital expenditure offset a slight decline in operating cash flow. Compared to the same quarter last year, both revenue and operating cash flow were higher, and free cash flow margin strengthened considerably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$577.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$620.2M
Cash generated by operations before capital spending.
CapEx
$42.8M
Capital spending and related asset purchases.
FCF margin
30.3%
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 | $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% |
| 2025-12-31 | $1.9B | $620.2M | $42.8M | $577.4M | 30.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Efficiency
Capital expenditure was lower than both the prior quarter and the year-ago period, enabling free cash flow to increase despite a slight sequential drop in operating cash flow.
This reduction in capital outlay bolstered free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased slightly from the prior quarter but increased substantially from a year ago. With capital expenditure markedly lower than both comparisons, free cash flow margin narrowed sequentially but widened significantly year-over-year.
Sequentially, revenue increased while free cash flow held steady, as lower capital expenditure offset a slight decline in operating cash flow. Compared to the same quarter last year, both revenue and operating cash flow were higher, and free cash flow margin strengthened considerably.
Watch deferred revenue trends, which the company notes represent a substantial component of free cash flow and future revenue recognition.