Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Operating cash flow and free cash flow were stable compared to the prior quarter but significantly lower than a year ago, resulting in a weakened free cash flow margin.
- The company converted a portion of its revenue into operating cash flow, and after minimal capital expenditure, free cash flow was generated. The free cash flow margin was lower than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were slightly higher, while capital expenditure was lower and the free cash flow margin was slightly lower. Compared to the same quarter one year earlier, all metrics except capital expenditure were lower, with a notably weaker free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$436.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$439.7M
Cash generated by operations before capital spending.
CapEx
$3.7M
Capital spending and related asset purchases.
FCF margin
16.1%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $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% |
| 2025-12-31 | $2.7B | $439.7M | $3.7M | $436.0M | 16.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | 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.
Free cash flow margin decline
The free cash flow margin was lower than both the prior quarter and the year-ago quarter, reflecting a proportionally smaller free cash flow relative to revenue.
Sustained pressure on free cash flow margin could affect future cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a portion of its revenue into operating cash flow, and after minimal capital expenditure, free cash flow was generated. The free cash flow margin was lower than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were slightly higher, while capital expenditure was lower and the free cash flow margin was slightly lower. Compared to the same quarter one year earlier, all metrics except capital expenditure were lower, with a notably weaker free cash flow margin.
Monitor the trajectory of free cash flow margin, as it has declined relative to both the prior quarter and the year-ago period.