Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, driven by a significant increase in operating cash flow. Compared to the same quarter last year, free cash flow was lower despite similar revenue, reflecting a weaker cash conversion margin.
- Revenue was slightly lower than the prior quarter and the year-ago quarter, but operating cash flow rose substantially from the prior quarter, leading to a higher free cash flow margin. Capital expenditure was modestly higher than the prior quarter but lower than the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and margin improved markedly. Compared to the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow was significantly reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$534.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$265.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$300.7M
Cash generated by operations before capital spending.
CapEx
$35.6M
Capital spending and related asset purchases.
FCF margin
18.6%
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 | $1.3B | $332.4M | $60.2M | $272.2M | 20.2% |
| 2025-03-31 | $1.1B | -$35.8M | $25.5M | -$61.3M | -5.7% |
| 2025-06-30 | $1.5B | $86.8M | $28.5M | $58.3M | 3.9% |
| 2025-09-30 | $1.4B | $300.7M | $35.6M | $265.1M | 18.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 Recovery
Operating cash flow increased substantially from the prior quarter, reversing a prior weakness. This was the strongest observable driver of the quarter's free cash flow improvement.
The higher operating cash flow directly lifted free cash flow and margin, despite slightly lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the year-ago quarter, but operating cash flow rose substantially from the prior quarter, leading to a higher free cash flow margin. Capital expenditure was modestly higher than the prior quarter but lower than the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and margin improved markedly. Compared to the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow was significantly reduced.
Monitor the trajectory of operating cash flow, as it was the primary driver of the quarter's cash conversion swing.