Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose, though capital expenditure also increased. Compared to the same quarter last year, free cash flow weakened significantly due to lower operating cash flow.
- Revenue was stable sequentially, while operating cash flow improved, driving a higher free cash flow margin. Capital expenditure rose, partially offsetting the cash conversion gain.
- Compared to the prior quarter, free cash flow and margin improved as operating cash flow rose. Year over year, free cash flow and margin weakened sharply, led by a decline in operating cash flow despite slightly higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$268.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$129.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$189.3M
Cash generated by operations before capital spending.
CapEx
$59.3M
Capital spending and related asset purchases.
FCF margin
11.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $1.1B | $189.3M | $59.3M | $129.9M | 11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -531.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$865.1M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free cash flow improvement vs. year-over-year weakness
Free cash flow rose from the previous quarter as operating cash flow increased, but it remained well below the level from the same quarter last year. The sequential gain was the strongest observable driver, yet the year-over-year decline signals a need for caution.
The mix of sequential improvement and year-over-year weakness creates uncertainty about the trend in free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, while operating cash flow improved, driving a higher free cash flow margin. Capital expenditure rose, partially offsetting the cash conversion gain.
Compared to the prior quarter, free cash flow and margin improved as operating cash flow rose. Year over year, free cash flow and margin weakened sharply, led by a decline in operating cash flow despite slightly higher capital expenditure.
Monitor whether the sequential improvement in operating cash flow can sustain, given the large year-over-year decline.