Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but weakened compared to the same quarter last year. The cash conversion rate strengthened sequentially, driven by higher operating cash flow relative to revenue.
- Revenue was stable versus the prior quarter, while operating cash flow increased significantly, leading to a higher free cash flow margin. Capital expenditure was slightly lower than the previous quarter, supporting the improvement in cash conversion.
- Compared to the prior quarter, free cash flow and margin improved, driven by stronger operating cash flow. Versus the same quarter last year, free cash flow and margin were lower, as operating cash flow declined despite a slight increase in revenue.
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
$438.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$477.5M
Cash generated by operations before capital spending.
CapEx
$39.1M
Capital spending and related asset purchases.
FCF margin
10.9%
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 | $4.3B | $1.9B | $47.0M | $1.9B | 43.5% |
| 2025-03-31 | $3.7B | -$786.8M | $29.5M | -$816.3M | -22.1% |
| 2025-06-30 | $4.0B | $210.1M | $42.1M | $168.0M | 4.2% |
| 2025-09-30 | $4.0B | $477.5M | $39.1M | $438.4M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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 substantially from the prior quarter, driving the improvement in free cash flow and margin. This was the strongest observable factor in the quarter's cash conversion performance.
The higher operating cash flow more than offset a modest increase in capital expenditure, resulting in improved free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter, while operating cash flow increased significantly, leading to a higher free cash flow margin. Capital expenditure was slightly lower than the previous quarter, supporting the improvement in cash conversion.
Compared to the prior quarter, free cash flow and margin improved, driven by stronger operating cash flow. Versus the same quarter last year, free cash flow and margin were lower, as operating cash flow declined despite a slight increase in revenue.
Monitor the trend in operating cash flow, as it was the primary factor behind both the sequential improvement and the year-over-year decline.