Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved as operating cash flow grew faster than revenue. Capital expenditure rose slightly but remained well below operating cash flow.
- Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow expanded at a higher rate than revenue, leading to stronger free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, all cash flow metrics improved, and free cash flow margin was higher. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin all strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$889.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$274.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$299.4M
Cash generated by operations before capital spending.
CapEx
$24.5M
Capital spending and related asset purchases.
FCF margin
26.7%
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 | $1.0B | $266.2M | $41.3M | $224.9M | 21.5% |
| 2025-03-31 | $883.7M | $194.4M | $17.3M | $177.2M | 20.1% |
| 2025-06-30 | $983.2M | $236.4M | $23.9M | $212.5M | 21.6% |
| 2025-09-30 | $1.0B | $299.4M | $24.5M | $274.9M | 26.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 sequentially and year-over-year at a pace exceeding revenue growth, directly lifting free cash flow and margin. The filing notes higher cash from operations for the nine-month period, supported by lower tax payments and favorable working capital.
The stronger cash conversion underpinned the quarterly free cash flow improvement without a commensurate rise in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow expanded at a higher rate than revenue, leading to stronger free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, all cash flow metrics improved, and free cash flow margin was higher. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin all strengthened.
Monitor whether capital expenditure remains stable relative to operating cash flow in coming quarters.