Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the same quarter last year, driven by higher revenue and stronger operating cash flow, though it declined from the prior quarter. The free cash flow margin weakened sequentially but strengthened year-over-year, reflecting a mixed cash conversion performance.
- Revenue grew compared to both the prior quarter and the year-ago quarter. Operating cash flow increased year-over-year but decreased from the prior quarter, while capital expenditure was higher than the prior quarter but slightly below the year-ago level. As a result, free cash flow rose year-over-year but fell sequentially, with the free cash flow margin following the same pattern.
- Compared to the immediately preceding quarter, free cash flow and margin decreased, while revenue increased. Compared to the same quarter one year earlier, free cash flow, margin, and revenue all increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$423.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$100.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$125.7M
Cash generated by operations before capital spending.
CapEx
$25.6M
Capital spending and related asset purchases.
FCF margin
14.2%
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 | $597.5M | $147.5M | $53.6M | $93.9M | 15.7% |
| 2025-03-31 | $569.0M | $63.8M | $12.3M | $51.5M | 9.1% |
| 2025-06-30 | $649.1M | $196.5M | $18.6M | $177.9M | 27.4% |
| 2025-09-30 | $706.3M | $125.7M | $25.6M | $100.1M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 Supports Cash Generation
Revenue was higher than both the prior quarter and the year-ago period. This increase, combined with operating cash flow that exceeded the year-ago level, drove year-over-year improvement in free cash flow.
The stronger revenue and operating cash flow versus last year provided a solid base for year-over-year free cash flow growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew compared to both the prior quarter and the year-ago quarter. Operating cash flow increased year-over-year but decreased from the prior quarter, while capital expenditure was higher than the prior quarter but slightly below the year-ago level. As a result, free cash flow rose year-over-year but fell sequentially, with the free cash flow margin following the same pattern.
Compared to the immediately preceding quarter, free cash flow and margin decreased, while revenue increased. Compared to the same quarter one year earlier, free cash flow, margin, and revenue all increased.
Monitor the lower operating cash flow this quarter relative to the prior quarter, as it was the primary factor behind the sequential decline in free cash flow.