Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the prior quarter, driven by higher operating cash flow. Compared to the same quarter last year, free cash flow also increased, with the margin remaining broadly stable.
- Revenue rose from the prior quarter, and operating cash flow increased at a faster pace, lifting free cash flow and the free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, but the increase in operating cash flow more than offset this.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow showing a notable increase. Versus the same quarter one year earlier, free cash flow was higher while the margin was slightly lower, as capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$701.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$745.1M
Cash generated by operations before capital spending.
CapEx
$43.6M
Capital spending and related asset purchases.
FCF margin
31.9%
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 | $461.7M | $91.3M | $370.4M | 20.4% |
| 2025-03-31 | $1.9B | $507.6M | $29.1M | $478.5M | 25.8% |
| 2025-06-30 | $2.1B | $466.0M | $31.4M | $434.6M | 20.6% |
| 2025-09-30 | $2.2B | $745.1M | $43.6M | $701.5M | 31.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Strength
Operating cash flow was the strongest observable driver, rising from both the prior quarter and the year-ago quarter. This directly supported the increase in free cash flow.
Higher operating cash flow was the primary factor behind the improvement in free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter, and operating cash flow increased at a faster pace, lifting free cash flow and the free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, but the increase in operating cash flow more than offset this.
Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow showing a notable increase. Versus the same quarter one year earlier, free cash flow was higher while the margin was slightly lower, as capital expenditure was also higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased from both comparison periods.