Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue grew compared to both the prior quarter and the same quarter last year. However, free cash flow margin weakened significantly due to a substantial increase in capital expenditure.
- Operating cash flow improved relative to both comparison periods, but capital expenditure increased sharply, resulting in a weaker free cash flow and margin.
- Compared to the prior quarter, revenue and operating cash flow rose, while capital expenditure more than offset the gain, causing free cash flow and margin to decline. Versus the same quarter last year, revenue and operating cash flow were higher, but capital expenditure also increased, leading to a lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$377.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$48.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$183.3M
Cash generated by operations before capital spending.
CapEx
$135.1M
Capital spending and related asset purchases.
FCF margin
6.1%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $783.8M | $183.3M | $135.1M | $48.2M | 6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 47.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.2% | 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.
Capital Expenditure Increase
Capital expenditure rose markedly compared to both the prior quarter and the same quarter one year earlier. This increase was the primary factor behind the decline in free cash flow and free cash flow margin.
If capital expenditure remains elevated, free cash flow generation could continue to be constrained.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved relative to both comparison periods, but capital expenditure increased sharply, resulting in a weaker free cash flow and margin.
Compared to the prior quarter, revenue and operating cash flow rose, while capital expenditure more than offset the gain, causing free cash flow and margin to decline. Versus the same quarter last year, revenue and operating cash flow were higher, but capital expenditure also increased, leading to a lower free cash flow and margin.
Monitor capital expenditure levels, as the sharp increase from the prior quarter substantially reduced free cash flow.