Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin strengthened this quarter. Revenue and operating cash flow increased, while capital expenditure decreased, leading to a higher free cash flow margin compared with both the prior quarter and the year-ago quarter.
- With higher revenue and operating cash flow, combined with lower capital expenditure, free cash flow and its margin improved. The conversion of revenue into free cash flow was more efficient this quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Similarly, relative to the same quarter one year earlier, all metrics improved, with free cash flow margin notably higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$735.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$841.0M
Cash generated by operations before capital spending.
CapEx
$105.4M
Capital spending and related asset purchases.
FCF margin
29.4%
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 | $2.4B | $822.6M | $312.0M | $510.6M | 21.2% |
| 2025-03-31 | $2.3B | $581.6M | $116.6M | $465.0M | 20.6% |
| 2025-06-30 | $2.4B | $715.4M | $155.3M | $560.1M | 23.0% |
| 2025-09-30 | $2.5B | $841.0M | $105.4M | $735.6M | 29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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 Strength
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, while capital expenditure declined. This combination drove a higher free cash flow margin.
Strong operating cash flow provides the company with flexibility to fund investments and shareholder returns, as indicated in the filing's discussion of liquidity and capital resources.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With higher revenue and operating cash flow, combined with lower capital expenditure, free cash flow and its margin improved. The conversion of revenue into free cash flow was more efficient this quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Similarly, relative to the same quarter one year earlier, all metrics improved, with free cash flow margin notably higher.
Monitor capital expenditure levels, as they decreased this quarter and are a key variable in sustaining free cash flow growth.