Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved both sequentially and year-over-year, driven by higher operating cash flow. The free cash flow margin strengthened from the prior quarter but remained slightly below the year-ago level.
- Revenue growth supported higher operating cash flow, which more than offset increased capital expenditure, resulting in stronger free cash flow. The free cash flow margin expanded versus the previous quarter, reflecting efficient cash conversion.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure also increased. Versus the same quarter one year earlier, all metrics were higher except the free cash flow margin, which was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$578.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$813.0M
Cash generated by operations before capital spending.
CapEx
$235.0M
Capital spending and related asset purchases.
FCF margin
17.0%
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 | $3.0B | $1.6B | $253.0M | $1.4B | 46.7% |
| 2025-03-31 | $3.1B | $1.7B | $205.0M | $1.5B | 47.7% |
| 2025-06-30 | $3.2B | $716.0M | $190.0M | $526.0M | 16.4% |
| 2025-09-30 | $3.4B | $813.0M | $235.0M | $578.0M | 17.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.9% | 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 increased both from the prior quarter and the year-ago period, providing the primary lift to free cash flow. The filing notes that subscription services are generally paid in advance, which supports consistent cash inflows.
Sustained operating cash generation underpins the company's ability to fund capital expenditures and generate free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth supported higher operating cash flow, which more than offset increased capital expenditure, resulting in stronger free cash flow. The free cash flow margin expanded versus the previous quarter, reflecting efficient cash conversion.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure also increased. Versus the same quarter one year earlier, all metrics were higher except the free cash flow margin, which was slightly lower.
Monitor capital expenditure trends, as its growth outpaced operating cash flow expansion on a sequential basis.