Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sequentially and year-over-year, driven by stronger operating cash flow despite lower revenue. The company maintained disciplined capital spending.
- Operating cash flow rose sharply relative to revenue, resulting in a higher free cash flow margin. Capital expenditures increased only modestly.
- Compared to the previous quarter, revenue declined but operating cash flow improved, leading to a materially higher free cash flow margin. Versus the same quarter last year, revenue was also lower, yet free cash flow was higher and the margin widened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$846.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$415.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$456.0M
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
21.6%
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 | $1.8B | $407.0M | $56.0M | $351.0M | 19.2% |
| 2025-03-31 | $1.8B | -$158.0M | $32.0M | -$190.0M | -10.5% |
| 2025-06-30 | $2.1B | $306.0M | $36.0M | $270.0M | 13.2% |
| 2025-09-30 | $1.9B | $456.0M | $41.0M | $415.0M | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 219.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Strong operating cash generation
Operating cash flow increased significantly from both the prior quarter and the year-ago period, despite revenue being lower in both comparisons.
This drove the free cash flow margin to its highest level among the periods shown.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose sharply relative to revenue, resulting in a higher free cash flow margin. Capital expenditures increased only modestly.
Compared to the previous quarter, revenue declined but operating cash flow improved, leading to a materially higher free cash flow margin. Versus the same quarter last year, revenue was also lower, yet free cash flow was higher and the margin widened.
Monitor changes in receivables and inventories, which have increased from year-end levels as noted in the balance sheet.