Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow margin was stable compared to the same quarter one year earlier but weakened sharply from the immediately preceding quarter. Revenue increased relative to both periods, while operating cash flow was lower than the preceding quarter, leading to a lower free cash flow sequentially.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was higher than the prior year but lower than the prior quarter, resulting in free cash flow that was higher year-over-year but lower sequentially. The free cash flow margin was unchanged from the prior year but weakened from the prior quarter.
- Sequentially, revenue improved, but operating cash flow and free cash flow both decreased, causing the margin to weaken. Year-over-year, revenue, operating cash flow, and free cash flow all improved, with the margin remaining stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$595.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$111.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$120.6M
Cash generated by operations before capital spending.
CapEx
$8.9M
Capital spending and related asset purchases.
FCF margin
17.3%
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 | $573.8M | $89.6M | $16.7M | $73.0M | 12.7% |
| 2025-03-31 | $585.1M | $107.8M | $11.7M | $96.1M | 16.4% |
| 2025-06-30 | $615.4M | $327.1M | $12.2M | $314.9M | 51.2% |
| 2025-09-30 | $644.7M | $120.6M | $8.9M | $111.7M | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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 volatility
The sequential decline in operating cash flow occurred despite higher revenue, primarily due to changes in working capital items as noted in the filing. The company's cash and cash equivalents also decreased from the prior quarter-end.
This volatility in operating cash flow may lead to uneven free cash flow generation across quarters.
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 was higher than the prior year but lower than the prior quarter, resulting in free cash flow that was higher year-over-year but lower sequentially. The free cash flow margin was unchanged from the prior year but weakened from the prior quarter.
Sequentially, revenue improved, but operating cash flow and free cash flow both decreased, causing the margin to weaken. Year-over-year, revenue, operating cash flow, and free cash flow all improved, with the margin remaining stable.
Monitor the magnitude of working capital changes, particularly deferred revenues and other assets and liabilities, as they significantly influenced operating cash flow in the current quarter.