Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow was stable versus the prior quarter but improved from a year ago, with the margin narrowing sequentially yet widening year-over-year.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than a year ago, while capital expenditure rose sequentially but fell sharply year-over-year, resulting in free cash flow that was stable sequentially and significantly higher year-over-year.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure increased, and free cash flow was stable, leading to a lower free cash flow margin. Versus the same quarter last year, all metrics improved except capital expenditure, which was lower, resulting in a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$730.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$892.5M
Cash generated by operations before capital spending.
CapEx
$162.5M
Capital spending and related asset purchases.
FCF margin
25.5%
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 | $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% |
| 2025-12-31 | $2.9B | $892.5M | $162.5M | $730.0M | 25.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | 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 Growth
Operating cash flow increased both sequentially and year-over-year, supporting higher free cash flow despite a rise in capital expenditure from the prior quarter.
The improvement in operating cash flow was the strongest observable driver of free cash flow stability and year-over-year growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than a year ago, while capital expenditure rose sequentially but fell sharply year-over-year, resulting in free cash flow that was stable sequentially and significantly higher year-over-year.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure increased, and free cash flow was stable, leading to a lower free cash flow margin. Versus the same quarter last year, all metrics improved except capital expenditure, which was lower, resulting in a higher free cash flow margin.
Monitor the trend in capital expenditure, which decreased year-over-year but increased sequentially, as it directly affects free cash flow conversion.