Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and slightly lower than the same quarter last year. Operating cash flow improved markedly, resulting in a much higher free cash flow margin.
- Operating cash flow was a high proportion of revenue, and capital expenditure was minimal, leading to a free cash flow margin that was substantially higher than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were significantly higher, while revenue was stable. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, though revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$433.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$438.7M
Cash generated by operations before capital spending.
CapEx
$5.4M
Capital spending and related asset purchases.
FCF margin
16.6%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $2.8B | $637.0M | $5.6M | $631.5M | 22.2% |
| 2025-03-31 | $2.4B | $207.8M | $7.1M | $200.7M | 8.4% |
| 2025-06-30 | $2.6B | $35.1M | $8.3M | $26.8M | 1.0% |
| 2025-09-30 | $2.6B | $438.7M | $5.4M | $433.3M | 16.6% |
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 | 0.2% | 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 Improvement
Operating cash flow increased substantially from the prior quarter and was higher than the same quarter last year, driving a large improvement in free cash flow.
This resulted in a free cash flow margin that was significantly higher than both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was a high proportion of revenue, and capital expenditure was minimal, leading to a free cash flow margin that was substantially higher than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were significantly higher, while revenue was stable. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, though revenue was slightly lower.
Monitor the sustainability of the free cash flow margin given the large sequential improvement in operating cash flow.