Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter last year. The cash conversion rate rose from the prior quarter yet fell from the year-ago level.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow grew sequentially, supporting a higher free cash flow margin, but was lower than the year-ago period, resulting in a narrower margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue and capital expenditure were higher, but operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$658.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$743.0M
Cash generated by operations before capital spending.
CapEx
$85.0M
Capital spending and related asset purchases.
FCF margin
32.8%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.7B | $674.0M | $74.0M | $600.0M | 35.9% |
| 2025-03-31 | $1.9B | $757.0M | $85.0M | $672.0M | 34.9% |
| 2025-06-30 | $1.9B | $543.0M | $75.0M | $468.0M | 24.7% |
| 2025-09-30 | $2.0B | $743.0M | $85.0M | $658.0M | 32.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base for cash generation.
Higher revenue supported the sequential increase in operating cash flow and free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow grew sequentially, supporting a higher free cash flow margin, but was lower than the year-ago period, resulting in a narrower margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue and capital expenditure were higher, but operating cash flow and free cash flow were lower, and the margin weakened.
Monitor whether operating cash flow can sustain its sequential improvement given the year-over-year decline.