Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved both sequentially and year-over-year, supported by stronger cash generation despite lower revenue. Operating cash flow rose from the prior quarter, while capital expenditure declined compared to the same quarter last year.
- Revenue decreased sequentially and year-over-year, yet operating cash flow improved, indicating enhanced cash conversion. Free cash flow margin expanded as higher operating cash flow and lower capital expenditure relative to the prior year more than offset the revenue decline.
- Compared to the preceding quarter, free cash flow, operating cash flow, and margin improved, while revenue was lower. Year-over-year, revenue declined but free cash flow and margin strengthened, with operating cash flow slightly lower and capital expenditure substantially reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$485.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$554.5M
Cash generated by operations before capital spending.
CapEx
$69.1M
Capital spending and related asset purchases.
FCF margin
31.7%
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 |
|---|---|---|---|---|---|
| 2025-04-04 | $1.4B | $602.3M | $147.6M | $454.7M | 31.5% |
| 2025-07-04 | $1.5B | $184.3M | $78.2M | $106.1M | 7.2% |
| 2025-10-03 | $1.6B | $418.7M | $46.3M | $372.4M | 24.0% |
| 2025-12-31 | $1.5B | $554.5M | $69.1M | $485.4M | 31.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 267.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$832.9M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Operating Cash Flow
Operating cash flow increased notably sequentially despite lower revenue, reflecting improved cash generation from operations. This improvement, combined with reduced capital expenditure year-over-year, drove the free cash flow gain.
The higher operating cash flow was the primary factor behind the sequential and year-over-year improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased sequentially and year-over-year, yet operating cash flow improved, indicating enhanced cash conversion. Free cash flow margin expanded as higher operating cash flow and lower capital expenditure relative to the prior year more than offset the revenue decline.
Compared to the preceding quarter, free cash flow, operating cash flow, and margin improved, while revenue was lower. Year-over-year, revenue declined but free cash flow and margin strengthened, with operating cash flow slightly lower and capital expenditure substantially reduced.
Monitor the sustainability of operating cash flow and whether capital expenditure remains at the lower level seen in the current quarter relative to the prior year.