Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from negative a year earlier but declined from the prior quarter. Revenue grew while operating cash flow fell, resulting in a lower free cash flow margin.
- Operating cash flow was higher than the same quarter last year but lower than the prior quarter. Capital expenditure decreased from a year ago but increased from the prior quarter, and free cash flow margin improved from negative to positive yet weakened sequentially.
- Compared with the prior quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Compared with the same quarter one year earlier, all metrics improved: revenue, operating cash flow, and free cash flow were higher, capital expenditure was lower, and the free cash flow margin turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$657.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$829.0M
Cash generated by operations before capital spending.
CapEx
$172.0M
Capital spending and related asset purchases.
FCF margin
9.8%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $6.3B | $647.0M | $135.0M | $512.0M | 8.2% |
| 2025-06-30 | $6.7B | $643.0M | $155.0M | $488.0M | 7.2% |
| 2025-09-30 | $6.5B | $1.1B | $142.0M | $951.0M | 14.7% |
| 2025-12-31 | $6.7B | $829.0M | $172.0M | $657.0M | 9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 147.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $335.0M | 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 was higher than the same quarter last year, which was the primary factor behind the shift from negative to positive free cash flow.
This improvement enabled free cash flow to become positive, reversing the negative position from one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the same quarter last year but lower than the prior quarter. Capital expenditure decreased from a year ago but increased from the prior quarter, and free cash flow margin improved from negative to positive yet weakened sequentially.
Compared with the prior quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Compared with the same quarter one year earlier, all metrics improved: revenue, operating cash flow, and free cash flow were higher, capital expenditure was lower, and the free cash flow margin turned positive.
The credit facility contains a maximum leverage covenant that may be affected by changes in debt and EBITDA, as described in the filing.