Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose sequentially and year-over-year, yet free cash flow fell sharply from the prior quarter as operating cash flow decreased and capital expenditure increased. Versus the year-ago quarter, free cash flow improved substantially, supported by higher operating cash flow and lower capital expenditure.
- Operating cash flow as a percentage of revenue weakened sequentially, resulting in a lower free cash flow margin. Capital expenditure increased, further reducing cash conversion from revenue to free cash flow.
- Compared to the immediately preceding quarter, free cash flow margin more than halved, driven by a decline in operating cash flow and an increase in capital expenditure. Relative to the same quarter one year earlier, free cash flow margin improved, as operating cash flow grew and capital expenditure decreased.
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
$280.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$387.2M
Cash generated by operations before capital spending.
CapEx
$106.7M
Capital spending and related asset purchases.
FCF margin
7.9%
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 | $3.3B | $777.2M | $112.1M | $665.1M | 20.0% |
| 2025-03-31 | $3.3B | $18.5M | $126.0M | -$107.5M | -3.2% |
| 2025-06-30 | $3.5B | $620.6M | $77.9M | $542.7M | 15.4% |
| 2025-09-30 | $3.6B | $387.2M | $106.7M | $280.5M | 7.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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.
Sequential Operating Cash Flow Decline
Operating cash flow decreased significantly from the prior quarter, more than offsetting the revenue increase and leading to a lower free cash flow.
This decline was the primary factor behind the reduction in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue weakened sequentially, resulting in a lower free cash flow margin. Capital expenditure increased, further reducing cash conversion from revenue to free cash flow.
Compared to the immediately preceding quarter, free cash flow margin more than halved, driven by a decline in operating cash flow and an increase in capital expenditure. Relative to the same quarter one year earlier, free cash flow margin improved, as operating cash flow grew and capital expenditure decreased.
Monitor the level of cash and cash equivalents, which declined from the prior year-end per the balance sheet in the filing.