Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and was higher than the same quarter last year, driven by a large increase in operating cash flow. The free cash flow margin strengthened significantly compared to both periods.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose substantially, leading to a much higher free cash flow and an improved free cash flow margin, indicating stronger cash conversion efficiency.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were markedly higher. Versus the same quarter one year earlier, both free cash flow and margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$800.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$516.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$650.0M
Cash generated by operations before capital spending.
CapEx
$134.0M
Capital spending and related asset purchases.
FCF margin
14.8%
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 | $2.7B | -$395.0M | $67.0M | -$462.0M | -16.9% |
| 2025-06-30 | $3.1B | $823.0M | $93.0M | $730.0M | 23.7% |
| 2025-09-30 | $3.2B | $118.0M | $102.0M | $16.0M | 0.5% |
| 2025-12-31 | $3.5B | $650.0M | $134.0M | $516.0M | 14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 324.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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.
Operating Cash Flow Surge
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, far outpacing the rise in capital expenditure. This drove free cash flow to a much higher level.
The strong operating cash flow was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose substantially, leading to a much higher free cash flow and an improved free cash flow margin, indicating stronger cash conversion efficiency.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were markedly higher. Versus the same quarter one year earlier, both free cash flow and margin also improved.
Monitor the sustainability of the elevated operating cash flow level, as it was the primary driver of the quarter's free cash flow improvement.