Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened versus the prior quarter and was slightly higher than the year-ago period.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased substantially, leading to higher free cash flow. Capital expenditure was slightly higher than both comparison periods, but the increase in operating cash flow more than offset this, resulting in a stronger free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, free cash flow was higher, and free cash flow margin was slightly higher.
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
$680.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$711.0M
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
15.3%
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 |
|---|---|---|---|---|---|
| 2025-01-03 | $4.3B | $294.0M | $86.0M | $208.0M | 4.8% |
| 2025-04-04 | $4.2B | $58.0M | $22.0M | $36.0M | 0.9% |
| 2025-07-04 | $4.2B | $486.0M | $29.0M | $457.0M | 10.8% |
| 2025-10-03 | $4.4B | $711.0M | $31.0M | $680.0M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 185.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, and the increase was proportionally larger than the revenue increase. This was the primary factor behind the improvement in free cash flow and margin.
Higher operating cash flow directly drove free cash flow higher and supported a stronger margin.
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 increased substantially, leading to higher free cash flow. Capital expenditure was slightly higher than both comparison periods, but the increase in operating cash flow more than offset this, resulting in a stronger free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, free cash flow was higher, and free cash flow margin was slightly higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.