Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive this quarter, driven by a sharp increase in operating cash flow. The free cash flow margin improved significantly compared to both the prior quarter and the same quarter last year.
- Revenue was higher than the prior quarter, while operating cash flow rose substantially, leading to a large positive free cash flow. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further supporting free cash flow. The free cash flow margin improved markedly versus both comparison periods.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved substantially, turning free cash flow from negative to positive. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$886.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$229.0M
Capital spending and related asset purchases.
FCF margin
26.6%
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 | $2.9B | $915.0M | $547.0M | $368.0M | 12.7% |
| 2025-03-31 | $2.9B | $526.0M | $379.0M | $147.0M | 5.1% |
| 2025-06-30 | $3.2B | $178.0M | $286.0M | -$108.0M | -3.4% |
| 2025-09-30 | $3.3B | $1.1B | $229.0M | $886.0M | 26.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 211.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.9% | 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 Surge
Operating cash flow rose sharply from the prior quarter and was also higher than the year-ago quarter. This was the strongest observable driver of the improvement in free cash flow.
The increase in operating cash flow was the primary factor behind the swing to positive free cash flow and the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, while operating cash flow rose substantially, leading to a large positive free cash flow. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further supporting free cash flow. The free cash flow margin improved markedly versus both comparison periods.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved substantially, turning free cash flow from negative to positive. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.