Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow rose sharply from the prior quarter, though its margin was slightly below the year-ago level.
- Operating cash flow grew from the prior quarter, while capital expenditure decreased, resulting in a substantial increase in free cash flow. The free cash flow margin improved sequentially but remained slightly lower than the year-ago quarter.
- Compared to the preceding quarter, revenue and operating cash flow were higher, and capital expenditure was lower, leading to a higher free cash flow and margin. Versus the same quarter one year earlier, revenue was higher but the free cash flow margin was slightly lower, reflecting a proportionally larger increase in revenue relative to free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$445.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$449.4M
Cash generated by operations before capital spending.
CapEx
$3.9M
Capital spending and related asset purchases.
FCF margin
56.2%
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 | $743.5M | $430.6M | $14.2M | $416.4M | 56.0% |
| 2025-03-31 | $745.8M | $301.7M | $11.6M | $290.1M | 38.9% |
| 2025-06-30 | $772.7M | $336.2M | $11.3M | $324.8M | 42.0% |
| 2025-09-30 | $793.4M | $449.4M | $3.9M | $445.5M | 56.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | 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 expansion
Operating cash flow increased from the prior quarter and from the same quarter last year, supported by higher revenue. This contributed to the improvement in free cash flow.
The higher operating cash flow, combined with lower capital expenditure, drove free cash flow higher sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew from the prior quarter, while capital expenditure decreased, resulting in a substantial increase in free cash flow. The free cash flow margin improved sequentially but remained slightly lower than the year-ago quarter.
Compared to the preceding quarter, revenue and operating cash flow were higher, and capital expenditure was lower, leading to a higher free cash flow and margin. Versus the same quarter one year earlier, revenue was higher but the free cash flow margin was slightly lower, reflecting a proportionally larger increase in revenue relative to free cash flow.
Monitor the level of capital expenditure, which decreased notably from both the prior quarter and the year-ago period.