Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than a year ago, but operating cash flow and free cash flow declined significantly compared to both the prior quarter and the year-ago period. The free cash flow margin weakened sharply as a result.
- Revenue conversion into operating cash flow weakened considerably, with operating cash flow falling far short of revenue growth. Capital expenditure remained modest, so free cash flow mirrored the decline in operating cash flow, leading to a compressed free cash flow margin.
- Compared to the prior quarter, operating cash flow dropped sharply from a strong second quarter, while free cash flow margin fell from a high level. Versus the same quarter last year, all cash flow metrics deteriorated, with operating cash flow and free cash flow both lower despite slightly higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$782.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$178.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$196.3M
Cash generated by operations before capital spending.
CapEx
$17.4M
Capital spending and related asset purchases.
FCF margin
17.5%
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 | $972.9M | $86.5M | $22.7M | $63.8M | 6.6% |
| 2025-03-31 | $1.0B | -$38.9M | $16.8M | -$55.7M | -5.5% |
| 2025-06-30 | $1.1B | $606.6M | $10.9M | $595.7M | 53.0% |
| 2025-09-30 | $1.0B | $196.3M | $17.4M | $178.9M | 17.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 Decline
Operating cash flow fell sharply from both the prior quarter and the year-ago period, driving the significant drop in free cash flow and margin. The filing notes that the company continued to generate significant cash in the third quarter consistent with seasonal patterns, but the actual reported figure is markedly lower.
Sustained weakness in operating cash flow would pressure free cash flow generation and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow weakened considerably, with operating cash flow falling far short of revenue growth. Capital expenditure remained modest, so free cash flow mirrored the decline in operating cash flow, leading to a compressed free cash flow margin.
Compared to the prior quarter, operating cash flow dropped sharply from a strong second quarter, while free cash flow margin fell from a high level. Versus the same quarter last year, all cash flow metrics deteriorated, with operating cash flow and free cash flow both lower despite slightly higher revenue.
Monitor whether operating cash flow recovers from the current quarter's decline in subsequent periods.