Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened significantly compared to the prior quarter, with free cash flow margin lower than both the previous quarter and the same quarter one year earlier, despite higher revenue. The sharp decline in operating cash flow drove the reduction in free cash flow.
- Revenue was higher than both the prior quarter and the year-ago quarter. However, operating cash flow was lower than both comparatives, resulting in lower free cash flow and a lower free cash flow margin. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter.
- Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin were all sharply lower, while revenue was slightly higher. Versus the same quarter one year earlier, revenue was higher but free cash flow and margin were lower, with operating cash flow slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$78.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$127.0M
Cash generated by operations before capital spending.
CapEx
$49.0M
Capital spending and related asset purchases.
FCF margin
4.6%
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 |
|---|---|---|---|---|---|
| 2025-01-24 | $1.6B | $385.0M | $47.0M | $338.0M | 20.6% |
| 2025-04-25 | $1.7B | $675.0M | $35.0M | $640.0M | 37.0% |
| 2025-07-25 | $1.6B | $673.0M | $53.0M | $620.0M | 39.8% |
| 2025-10-24 | $1.7B | $127.0M | $49.0M | $78.0M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 25.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$414.0M | 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 slightly lower than the year-ago quarter, even though revenue was higher. This decline was the dominant factor reducing free cash flow and margin.
The drop in operating cash flow drove free cash flow to a level lower than both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. However, operating cash flow was lower than both comparatives, resulting in lower free cash flow and a lower free cash flow margin. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter.
Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin were all sharply lower, while revenue was slightly higher. Versus the same quarter one year earlier, revenue was higher but free cash flow and margin were lower, with operating cash flow slightly lower.
Monitor the level of operating cash flow relative to revenue, as its decline was the primary factor behind the weakening of free cash flow.