Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased from both the prior quarter and the same quarter last year. The free cash flow margin improved compared to the preceding quarter but was slightly lower than the year-ago period.
- Operating cash flow grew faster than revenue, boosting the free cash flow margin. Capital expenditure remained modest, supporting high cash conversion.
- Compared to the prior quarter, all key metrics strengthened. Year-over-year, revenue and cash flows were higher, though the margin narrowed slightly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$764.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$777.3M
Cash generated by operations before capital spending.
CapEx
$13.3M
Capital spending and related asset purchases.
FCF margin
54.3%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $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% |
| 2025-12-31 | $1.4B | $777.3M | $13.3M | $764.0M | 54.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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 increased both sequentially and year-over-year, directly lifting operating cash flow. This higher revenue base is the primary factor behind the improved free cash flow.
The higher revenue base supported improved free cash flow despite stable margin dynamics.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue, boosting the free cash flow margin. Capital expenditure remained modest, supporting high cash conversion.
Compared to the prior quarter, all key metrics strengthened. Year-over-year, revenue and cash flows were higher, though the margin narrowed slightly.
Monitor capital expenditure trends as they increased sequentially but remain low relative to operating cash flow.