Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow fell significantly from the prior quarter and the year-ago quarter, despite revenue that held roughly steady versus the prior quarter and rose from a year earlier. The decline was driven by a much lower operating cash flow, while capital expenditure remained relatively stable.
- Revenue was approximately stable compared to the prior quarter and higher than a year ago, but operating cash flow dropped sharply, resulting in a free cash flow margin that was lower than both comparison periods.
- Compared to the immediately preceding quarter, free cash flow and its margin weakened considerably because operating cash flow was substantially lower with little change in revenue or capital expenditure. Relative to the same quarter one year earlier, free cash flow and margin also declined, as operating cash flow was lower even though revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$173.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$203.0M
Cash generated by operations before capital spending.
CapEx
$30.0M
Capital spending and related asset purchases.
FCF margin
5.6%
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 | $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% |
| 2025-12-31 | $3.1B | $203.0M | $30.0M | $173.0M | 5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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 Drop
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, while revenue was stable to higher. This was the strongest observable driver of the decline in free cash flow.
The lower operating cash flow compressed free cash flow and its margin, offsetting the benefit of higher revenue versus last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was approximately stable compared to the prior quarter and higher than a year ago, but operating cash flow dropped sharply, resulting in a free cash flow margin that was lower than both comparison periods.
Compared to the immediately preceding quarter, free cash flow and its margin weakened considerably because operating cash flow was substantially lower with little change in revenue or capital expenditure. Relative to the same quarter one year earlier, free cash flow and margin also declined, as operating cash flow was lower even though revenue was higher.
Monitor whether operating cash flow recovers toward prior levels in upcoming quarters, as it was the key factor behind the current quarter's lower free cash flow.