Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and was also higher than the same quarter last year, driven by a strong increase in operating cash flow. The free cash flow margin expanded significantly compared to both periods.
- Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow increased substantially relative to both periods, while capital expenditure also rose. The resulting free cash flow and free cash flow margin were both higher sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was much higher, capital expenditure was higher, and free cash flow and free cash flow margin were both higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow and free cash flow margin were both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$725.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$280.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$472.2M
Cash generated by operations before capital spending.
CapEx
$192.1M
Capital spending and related asset purchases.
FCF margin
12.1%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $2.1B | $325.4M | $201.3M | $124.1M | 5.8% |
| 2025-03-31 | $2.1B | $339.1M | $148.1M | $191.0M | 8.9% |
| 2025-06-30 | $2.2B | $299.6M | $169.7M | $129.9M | 6.0% |
| 2025-09-30 | $2.3B | $472.2M | $192.1M | $280.1M | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | 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 the strongest observable driver, rising substantially from both the prior quarter and the year-ago quarter, which directly lifted free cash flow and margin.
The higher operating cash flow more than offset the 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 slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow increased substantially relative to both periods, while capital expenditure also rose. The resulting free cash flow and free cash flow margin were both higher sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was much higher, capital expenditure was higher, and free cash flow and free cash flow margin were both higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow and free cash flow margin were both higher.
Monitor the trend in capital expenditure, which increased in both comparisons and may affect future free cash flow conversion.