Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter but slightly below the year-ago quarter. The free cash flow margin weakened sequentially and was also lower year over year.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but lower than the year-ago quarter. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter. Free cash flow was lower than the prior quarter and slightly below the year-ago quarter. The free cash flow margin weakened sequentially and was lower year over year.
- Compared to the prior quarter, free cash flow was lower despite higher revenue, driven by a significantly lower operating cash flow. Compared to the year-ago quarter, free cash flow was slightly lower on higher revenue and lower capital expenditure, but operating cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$509.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$525.8M
Cash generated by operations before capital spending.
CapEx
$16.4M
Capital spending and related asset purchases.
FCF margin
40.3%
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 | $1.2B | -$2.6B | $40.7M | -$2.7B | -218.9% |
| 2025-03-31 | $1.2B | $2.7B | $12.4M | $2.7B | 225.5% |
| 2025-06-30 | $1.2B | $1.9B | $12.4M | $1.9B | 150.8% |
| 2025-09-30 | $1.3B | $525.8M | $16.4M | $509.4M | 40.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 Decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, despite higher revenue. This was the primary factor behind the lower free cash flow and the weakened free cash flow margin.
The lower operating cash flow reduced free cash flow and compressed the free cash flow margin.
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. Operating cash flow was lower than the prior quarter but lower than the year-ago quarter. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter. Free cash flow was lower than the prior quarter and slightly below the year-ago quarter. The free cash flow margin weakened sequentially and was lower year over year.
Compared to the prior quarter, free cash flow was lower despite higher revenue, driven by a significantly lower operating cash flow. Compared to the year-ago quarter, free cash flow was slightly lower on higher revenue and lower capital expenditure, but operating cash flow was lower.
Monitor the level of operating cash flow relative to revenue, as it declined sequentially and year over year.