Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, with free cash flow and margin both higher. Compared to the same quarter last year, free cash flow and margin were lower despite higher revenue.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose from the prior quarter but was lower than the year-ago quarter. Capital expenditure was lower than the year-ago quarter and similar to the prior quarter. Free cash flow and free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Compared to the prior quarter, free cash flow and margin were higher, driven by a larger increase in operating cash flow relative to capital expenditure. Versus the year-ago quarter, free cash flow and margin were lower, as operating cash flow declined more than capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$421.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$563.5M
Cash generated by operations before capital spending.
CapEx
$142.4M
Capital spending and related asset purchases.
FCF margin
5.5%
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 | $6.6B | $712.0M | $147.0M | $565.0M | 8.6% |
| 2025-03-31 | $6.2B | $243.2M | $132.8M | $110.4M | 1.8% |
| 2025-06-30 | $6.8B | $295.7M | $140.3M | $155.4M | 2.3% |
| 2025-09-30 | $7.6B | $563.5M | $142.4M | $421.0M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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.
Operating Cash Flow Recovery
Operating cash flow increased from the prior quarter, contributing to a higher free cash flow and margin. This improvement occurred even as capital expenditure remained stable.
The sequential rise in operating cash flow was the strongest observable driver of the quarter's cash conversion improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose from the prior quarter but was lower than the year-ago quarter. Capital expenditure was lower than the year-ago quarter and similar to the prior quarter. Free cash flow and free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
Compared to the prior quarter, free cash flow and margin were higher, driven by a larger increase in operating cash flow relative to capital expenditure. Versus the year-ago quarter, free cash flow and margin were lower, as operating cash flow declined more than capital expenditure.
Monitor whether operating cash flow can sustain its sequential improvement, as it is the primary driver of free cash flow variability.