Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were stable compared to the prior quarter, while free cash flow margin weakened slightly. Versus the same quarter last year, revenue was higher but free cash flow margin was lower.
- Operating cash flow exceeded revenue by a wide margin, resulting in a free cash flow margin above four hundred percent. Capital expenditure was modest relative to operating cash flow, supporting a high conversion rate.
- Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow and free cash flow were stable, and free cash flow margin was slightly lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were slightly lower, and free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$46.0M
Capital spending and related asset purchases.
FCF margin
454.1%
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 | $366.0M | $985.0M | $38.0M | $947.0M | 258.7% |
| 2025-06-30 | $366.0M | $1.3B | $40.0M | $1.3B | 341.8% |
| 2025-09-30 | $386.0M | $1.8B | $45.0M | $1.8B | 464.5% |
| 2025-12-31 | $388.0M | $1.8B | $46.0M | $1.8B | 454.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 155.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.9% | 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.
Stable Operating Cash Flow
Operating cash flow remained at a consistent level compared to the prior quarter and was only slightly lower than the year-ago quarter, providing a solid base for free cash flow generation.
The stable operating cash flow supported free cash flow at a level comparable to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue by a wide margin, resulting in a free cash flow margin above four hundred percent. Capital expenditure was modest relative to operating cash flow, supporting a high conversion rate.
Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow and free cash flow were stable, and free cash flow margin was slightly lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were slightly lower, and free cash flow margin was lower.
Monitor the trend in free cash flow margin, which has weakened sequentially and year-over-year.