Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to the prior quarter and the same quarter a year ago. The free cash flow margin improved, reaching a level higher than both comparable periods.
- Operating cash flow as a percentage of revenue was higher than in the prior quarter and the year-ago quarter, supported by the increase in operating cash flow despite a modest rise in capital expenditure.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure increased. Relative to the same quarter one year earlier, revenue and cash flows were also higher, while capital expenditure was lower.
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
$488.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$501.1M
Cash generated by operations before capital spending.
CapEx
$12.4M
Capital spending and related asset purchases.
FCF margin
59.4%
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 | $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% |
| 2025-12-31 | $822.5M | $501.1M | $12.4M | $488.7M | 59.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 171.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | 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 conversion
Operating cash flow rose relative to revenue, contributing to a higher free cash flow margin.
This improvement in cash conversion strengthens free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher than in the prior quarter and the year-ago quarter, supported by the increase in operating cash flow despite a modest rise in capital expenditure.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure increased. Relative to the same quarter one year earlier, revenue and cash flows were also higher, while capital expenditure was lower.
The increase in capital expenditure from the prior quarter and the ongoing share repurchase program noted in the filing are items to monitor.