Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose while capital expenditure declined, resulting in a higher free cash flow margin. Compared to the same quarter last year, free cash flow and margin were lower despite similar revenue, driven by a weaker operating cash flow conversion.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but was lower than the year-ago quarter, leading to a free cash flow margin that improved sequentially but weakened year over year.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, supported by stronger operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined despite similar revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$325.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$354.6M
Cash generated by operations before capital spending.
CapEx
$29.1M
Capital spending and related asset purchases.
FCF margin
16.6%
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 | $1.9B | $526.2M | $35.3M | $490.9M | 25.9% |
| 2025-03-31 | $1.7B | $256.4M | $33.7M | $222.7M | 13.0% |
| 2025-06-30 | $1.9B | $245.7M | $35.3M | $210.4M | 11.1% |
| 2025-09-30 | $2.0B | $354.6M | $29.1M | $325.5M | 16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Sequential operating cash flow improvement
Operating cash flow increased from the prior quarter, which was the strongest observable driver of the sequential improvement in free cash flow and margin.
This drove free cash flow and margin higher compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but was lower than the year-ago quarter, leading to a free cash flow margin that improved sequentially but weakened year over year.
Compared to the immediately preceding quarter, free cash flow and margin were higher, supported by stronger operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined despite similar revenue.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite stable revenue.