Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved markedly from the prior quarter, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter a year earlier, both operating cash flow and free cash flow were lower on revenue that was lower.
- The company converted a higher share of revenue into operating cash flow compared to the prior quarter, reflecting improved cash generation. Capital expenditure as a proportion of revenue was lower, further boosting free cash flow.
- Sequentially, free cash flow and margin improved significantly as operating cash flow increased and capital spending decreased. Year over year, these metrics weakened, with free cash flow and margin lower due to a decline in operating cash flow and revenue that was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$424.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$96.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$118.4M
Cash generated by operations before capital spending.
CapEx
$21.9M
Capital spending and related asset purchases.
FCF margin
8.7%
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 | $339.5M | $53.3M | $286.1M | 23.2% |
| 2025-03-31 | $942.1M | $58.2M | $30.9M | $27.2M | 2.9% |
| 2025-06-30 | $1.1B | $72.2M | $57.7M | $14.5M | 1.4% |
| 2025-09-30 | $1.1B | $118.4M | $21.9M | $96.5M | 8.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$993.1M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Operating Cash Generation
Free cash flow rose sharply from the prior quarter, propelled by an increase in operating cash flow and a reduction in capital expenditure. This reversed the prior quarter's low cash conversion.
If operating cash flow continues at this level, free cash flow margins could sustain above recent lows.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher share of revenue into operating cash flow compared to the prior quarter, reflecting improved cash generation. Capital expenditure as a proportion of revenue was lower, further boosting free cash flow.
Sequentially, free cash flow and margin improved significantly as operating cash flow increased and capital spending decreased. Year over year, these metrics weakened, with free cash flow and margin lower due to a decline in operating cash flow and revenue that was lower.
Monitor whether operating cash flow can sustain its recent improvement as revenue remained stable compared to the prior quarter.