Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially and higher year over year. Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure.
- Operating cash flow increased while capital expenditure decreased, resulting in higher free cash flow and an improved free cash flow margin. Revenue was unchanged from the prior quarter but higher than a year ago.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, with capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$850.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$253.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$284.3M
Cash generated by operations before capital spending.
CapEx
$30.5M
Capital spending and related asset purchases.
FCF margin
16.9%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.3B | $432.4M | $68.0M | $364.4M | 27.3% |
| 2025-03-31 | $1.4B | $37.4M | $26.0M | $11.4M | 0.8% |
| 2025-06-30 | $1.5B | $260.6M | $39.9M | $220.7M | 14.9% |
| 2025-09-30 | $1.5B | $284.3M | $30.5M | $253.8M | 16.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$777.7M | 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 increased both sequentially and year over year. The filing attributes the year-to-date increase to higher net income and lower incentive payments, partially offset by working capital growth.
This improvement was the primary factor behind the free cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased while capital expenditure decreased, resulting in higher free cash flow and an improved free cash flow margin. Revenue was unchanged from the prior quarter but higher than a year ago.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, with capital expenditure lower.
Monitor changes in working capital, particularly accounts receivable, as noted in the filing as a partial offset to operating cash flow.