Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from the prior quarter and the year-ago quarter, driven by higher operating cash flow. The free cash flow margin strengthened as revenue remained stable sequentially and increased year over year.
- Revenue was stable sequentially and higher year over year. Operating cash flow increased both sequentially and year over year, while capital expenditure rose slightly. The resulting free cash flow and free cash flow margin improved compared with both periods.
- Compared with the prior quarter, free cash flow and free cash flow margin improved as operating cash flow increased. Compared with the same quarter one year earlier, free cash flow and free cash flow margin also improved, supported by higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$787.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$816.0M
Cash generated by operations before capital spending.
CapEx
$29.0M
Capital spending and related asset purchases.
FCF margin
25.2%
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 | $2.8B | $582.0M | $48.0M | $534.0M | 19.2% |
| 2025-03-31 | $2.7B | $452.0M | $19.0M | $433.0M | 16.1% |
| 2025-06-30 | $3.1B | $658.0M | $23.0M | $635.0M | 20.2% |
| 2025-09-30 | $3.1B | $816.0M | $29.0M | $787.0M | 25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 187.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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 Growth
Operating cash flow rose compared with both the prior quarter and the year-ago quarter, providing the primary support for the improvement in free cash flow.
Higher operating cash flow directly strengthened free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year over year. Operating cash flow increased both sequentially and year over year, while capital expenditure rose slightly. The resulting free cash flow and free cash flow margin improved compared with both periods.
Compared with the prior quarter, free cash flow and free cash flow margin improved as operating cash flow increased. Compared with the same quarter one year earlier, free cash flow and free cash flow margin also improved, supported by higher revenue and operating cash flow.
Monitor the trend in capital expenditure, which increased slightly in the current quarter.