Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue also increased over both periods.
- Revenue growth was accompanied by a material increase in operating cash flow. Capital expenditure rose slightly but remained modest relative to operating cash flow, allowing free cash flow and its margin to expand.
- Compared with the preceding quarter, all key metrics—revenue, operating cash flow, free cash flow, and margin—were higher. The same pattern holds when compared with the same quarter one year earlier, indicating improved cash conversion efficiency.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$434.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$444.2M
Cash generated by operations before capital spending.
CapEx
$9.3M
Capital spending and related asset purchases.
FCF margin
34.4%
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 | $1.2B | $340.5M | $14.4M | $326.1M | 27.3% |
| 2025-03-31 | $1.2B | $404.7M | $3.6M | $401.1M | 33.6% |
| 2025-06-30 | $1.2B | $379.9M | $4.1M | $375.8M | 30.9% |
| 2025-09-30 | $1.3B | $444.2M | $9.3M | $434.9M | 34.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 206.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Operating Cash Flow Growth
Operating cash flow rose substantially compared with both the prior quarter and the year-ago quarter, providing the primary impetus for free cash flow improvement. The company's liquidity and capital resources discussion notes that internally generated cash flows are the main source of operating liquidity, supplemented by debt when needed.
The operating cash flow increase enabled a higher free cash flow margin and stronger cash generation overall.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth was accompanied by a material increase in operating cash flow. Capital expenditure rose slightly but remained modest relative to operating cash flow, allowing free cash flow and its margin to expand.
Compared with the preceding quarter, all key metrics—revenue, operating cash flow, free cash flow, and margin—were higher. The same pattern holds when compared with the same quarter one year earlier, indicating improved cash conversion efficiency.
Monitor capital expenditure levels as they increased from the prior quarter, even though the amount remains small relative to operating cash flow.