Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow was substantially higher than both the prior quarter and the same quarter last year, driven by a significant increase in operating cash flow. The free cash flow margin improved considerably.
- Revenue was stable compared to the prior quarter, while operating cash flow rose sharply, leading to a much higher free cash flow and margin. Capital expenditure was slightly lower than the prior quarter and slightly higher than a year ago.
- Compared to the prior quarter, free cash flow and margin improved sharply as operating cash flow increased while revenue was flat. Versus the same quarter last year, revenue was higher and operating cash flow and free cash flow were also higher, with margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$963.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$371.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$402.3M
Cash generated by operations before capital spending.
CapEx
$31.1M
Capital spending and related asset purchases.
FCF margin
33.6%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $954.3M | $262.0M | $29.3M | $232.8M | 24.4% |
| 2025-03-31 | $998.4M | $238.0M | $30.0M | $207.9M | 20.8% |
| 2025-06-30 | $1.1B | $185.7M | $34.1M | $151.6M | 13.7% |
| 2025-09-30 | $1.1B | $402.3M | $31.1M | $371.2M | 33.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$316.7M | 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 Surge
Operating cash flow increased substantially from the prior quarter, far outpacing the stable revenue, resulting in a markedly higher free cash flow margin. This was the strongest observable driver of the quarter's performance.
The sharp improvement in operating cash flow was the primary factor behind the quarter's strong free cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, while operating cash flow rose sharply, leading to a much higher free cash flow and margin. Capital expenditure was slightly lower than the prior quarter and slightly higher than a year ago.
Compared to the prior quarter, free cash flow and margin improved sharply as operating cash flow increased while revenue was flat. Versus the same quarter last year, revenue was higher and operating cash flow and free cash flow were also higher, with margin improved.
Monitor the company's working capital position and credit facility usage, as highlighted in the filing.