Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened compared to the prior quarter but improved relative to the same quarter last year. Revenue was stable from the preceding quarter and higher year-over-year.
- Operating cash flow and free cash flow were lower than the immediately preceding quarter but higher than the year-ago quarter, with capital expenditure remaining stable across all periods. The resulting free cash flow margin followed the same pattern: lower quarter-over-quarter but higher year-over-year.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, while revenue was stable, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, all cash flow metrics and margin were higher on higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$326.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$355.8M
Cash generated by operations before capital spending.
CapEx
$29.4M
Capital spending and related asset purchases.
FCF margin
29.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $1.1B | $355.8M | $29.4M | $326.3M | 29.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 131.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$269.9M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Cash Flow Improvement
Free cash flow margin improved substantially compared to the same quarter last year, driven by higher operating cash flow while capital expenditure remained nearly unchanged.
The year-over-year increase in free cash flow is the strongest observable driver in this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and free cash flow were lower than the immediately preceding quarter but higher than the year-ago quarter, with capital expenditure remaining stable across all periods. The resulting free cash flow margin followed the same pattern: lower quarter-over-quarter but higher year-over-year.
Compared to the prior quarter, operating cash flow and free cash flow were lower, while revenue was stable, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, all cash flow metrics and margin were higher on higher revenue.
Monitor whether operating cash flow and free cash flow can sustain at levels higher than the year-ago quarter, given the quarter-over-quarter decline.