Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose versus both the prior quarter and the same quarter a year earlier. Free cash flow margin narrowed as operating cash flow did not increase proportionally.
- Operating cash flow increased year-over-year but declined sequentially, while capital expenditure remained modest and stable. As a result, free cash flow improved from the year-ago quarter but fell from the preceding quarter, and the free cash flow margin contracted on both comparisons.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin were both lower. Versus the same quarter one year earlier, revenue and absolute free cash flow were higher, but the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$500.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$507.7M
Cash generated by operations before capital spending.
CapEx
$6.8M
Capital spending and related asset purchases.
FCF margin
42.4%
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 | $827.5M | $460.3M | $3.1M | $457.2M | 55.3% |
| 2025-03-31 | $883.9M | $310.3M | $6.2M | $304.1M | 34.4% |
| 2025-06-30 | $1.0B | $539.3M | $7.6M | $531.6M | 53.0% |
| 2025-09-30 | $1.2B | $507.7M | $6.8M | $500.9M | 42.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing the basis for a higher absolute free cash flow year-over-year despite a lower margin.
Revenue growth was the strongest observable contributor to the year-over-year increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased year-over-year but declined sequentially, while capital expenditure remained modest and stable. As a result, free cash flow improved from the year-ago quarter but fell from the preceding quarter, and the free cash flow margin contracted on both comparisons.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin were both lower. Versus the same quarter one year earlier, revenue and absolute free cash flow were higher, but the free cash flow margin was lower.
Monitor the trajectory of operating cash flow relative to revenue growth, as it declined sequentially despite higher revenue.