Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that improved compared to the immediately preceding quarter but weakened relative to the same quarter one year earlier. Revenue was lower than the prior quarter but higher than the year-ago quarter.
- Revenue conversion into operating cash flow was robust, as operating cash flow exceeded free cash flow by only a small margin due to minimal capital expenditure. The free cash flow margin was driven by the ratio of operating cash flow to revenue.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$888.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$267.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$269.7M
Cash generated by operations before capital spending.
CapEx
$2.3M
Capital spending and related asset purchases.
FCF margin
39.0%
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 | $636.4M | $281.3M | $2.8M | $278.5M | 43.8% |
| 2025-06-30 | $643.9M | $243.9M | $1.9M | $242.0M | 37.6% |
| 2025-09-30 | $893.8M | $104.0M | $3.5M | $100.5M | 11.2% |
| 2025-12-31 | $685.8M | $269.7M | $2.3M | $267.4M | 39.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$963.0M | 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 Strength
Operating cash flow was substantially higher than in the immediately preceding quarter and also increased relative to the same quarter one year earlier. This improvement was the principal factor behind the higher free cash flow.
Higher operating cash flow directly improved free cash flow and the free cash flow margin compared with the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow was robust, as operating cash flow exceeded free cash flow by only a small margin due to minimal capital expenditure. The free cash flow margin was driven by the ratio of operating cash flow to revenue.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, while capital expenditure was lower.
Monitor the trajectory of accounts receivable, which decreased sequentially from the end of the prior fiscal year.