Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased relative to both the prior quarter and the same quarter last year. Operating cash flow grew, leading to higher free cash flow and an improved free cash flow margin.
- The company converted a higher proportion of revenue into operating cash flow this quarter. Capital expenditure was lower than the prior year quarter, further boosting free cash flow and margin. According to the filing, the company repaid a term loan and had no outstanding balance on its revolving credit facility.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with a slightly improved margin. Versus the same quarter one year earlier, the improvements were more pronounced, especially in free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$586.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$606.2M
Cash generated by operations before capital spending.
CapEx
$19.8M
Capital spending and related asset purchases.
FCF margin
35.7%
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 | $1.6B | $316.9M | $7.0M | $309.9M | 19.5% |
| 2025-03-31 | $1.5B | -$84.6M | $23.4M | -$108.0M | -7.1% |
| 2025-06-30 | $1.5B | $547.9M | $17.5M | $530.4M | 35.0% |
| 2025-09-30 | $1.6B | $606.2M | $19.8M | $586.4M | 35.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 164.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$651.5M | 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 compared to both the prior quarter and the same quarter last year. This rise was the key factor behind the higher free cash flow.
The stronger operating cash flow drove the free cash flow margin to a higher level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher proportion of revenue into operating cash flow this quarter. Capital expenditure was lower than the prior year quarter, further boosting free cash flow and margin. According to the filing, the company repaid a term loan and had no outstanding balance on its revolving credit facility.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with a slightly improved margin. Versus the same quarter one year earlier, the improvements were more pronounced, especially in free cash flow margin.
Monitor capital expenditure levels, as they were lower than the prior year quarter and could affect future free cash flow generation.