Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were significantly higher than the same quarter last year, though lower than the prior quarter. The free cash flow margin weakened sequentially but improved substantially year-over-year.
- Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow converted at a higher rate than a year ago, resulting in a free cash flow margin that was higher year-over-year but lower sequentially.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Compared to the same quarter last year, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$887.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$432.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$435.0M
Cash generated by operations before capital spending.
CapEx
$3.0M
Capital spending and related asset purchases.
FCF margin
47.2%
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 | $1.1B | -$80.0M | $3.0M | -$83.0M | -7.7% |
| 2025-03-31 | $1.2B | -$279.0M | $4.0M | -$283.0M | -24.5% |
| 2025-06-30 | $1.6B | $823.0M | $2.0M | $821.0M | 52.4% |
| 2025-09-30 | $915.0M | $435.0M | $3.0M | $432.0M | 47.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -480.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 strength
Operating cash flow was substantially higher than the same quarter last year, even though revenue was lower. This drove a significant year-over-year improvement in free cash flow and free cash flow margin.
The year-over-year improvement in cash conversion was the strongest observable driver this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow converted at a higher rate than a year ago, resulting in a free cash flow margin that was higher year-over-year but lower sequentially.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Compared to the same quarter last year, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in free cash flow margin, which weakened sequentially despite remaining well above the year-ago level.