Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year. However, free cash flow and margin weakened sequentially, though they improved from a year ago.
- Operating cash flow was lower than the previous quarter, leading to a lower free cash flow despite higher revenue. The free cash flow margin declined from the prior quarter but remained above the year-ago level.
- Compared to the immediately preceding quarter, operating cash flow decreased and capital expenditure increased, resulting in a lower free cash flow. Versus the same quarter one year earlier, both operating cash flow and free cash flow were higher, and capital expenditure also rose.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$432.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$455.8M
Cash generated by operations before capital spending.
CapEx
$23.6M
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 | $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% |
| 2025-12-31 | $1.7B | $455.8M | $23.6M | $432.2M | 25.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -43.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$787.6M | 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
Operating cash flow decreased from the prior quarter, which was the primary factor behind the sequential decline in free cash flow.
The lower operating cash flow more than offset the revenue increase, reducing free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the previous quarter, leading to a lower free cash flow despite higher revenue. The free cash flow margin declined from the prior quarter but remained above the year-ago level.
Compared to the immediately preceding quarter, operating cash flow decreased and capital expenditure increased, resulting in a lower free cash flow. Versus the same quarter one year earlier, both operating cash flow and free cash flow were higher, and capital expenditure also rose.
Capital expenditure increased sequentially and year-over-year; future spending levels are worth monitoring for their effect on free cash flow.