Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose from both the prior quarter and the same quarter last year, but free cash flow margin weakened sharply versus the prior quarter. Operating cash flow declined sequentially, while capital expenditure remained relatively stable.
- Revenue increased, yet operating cash flow fell, resulting in a lower free cash flow margin. The conversion from revenue to free cash flow weakened compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, while revenue was higher. Versus the same quarter one year earlier, revenue was higher, but free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$666.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$63.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$104.9M
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
8.5%
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 | $637.6M | $256.4M | $40.3M | $216.0M | 33.9% |
| 2025-06-30 | $664.6M | $237.6M | $48.1M | $189.5M | 28.5% |
| 2025-09-30 | $737.2M | $239.3M | $42.5M | $196.8M | 26.7% |
| 2025-12-31 | $751.2M | $104.9M | $41.0M | $63.9M | 8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.5% | 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 Decline
Operating cash flow decreased significantly from the prior quarter and was also lower than the year-ago quarter, despite higher revenue. This was the strongest observable driver of the weakened free cash flow.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, yet operating cash flow fell, resulting in a lower free cash flow margin. The conversion from revenue to free cash flow weakened compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, while revenue was higher. Versus the same quarter one year earlier, revenue was higher, but free cash flow and free cash flow margin were lower.
Monitor the relationship between revenue growth and operating cash flow, as the current quarter showed a divergence with higher revenue but lower cash generation.