Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially and year-over-year, reflecting higher cash generation relative to revenue.
- Operating cash flow rose while capital expenditure declined, resulting in a higher free cash flow. The free cash flow margin increased, indicating that a larger portion of revenue was converted into free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower. Versus the same quarter last year, all metrics improved, with operating cash flow and free cash flow showing notable increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$752.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$796.0M
Cash generated by operations before capital spending.
CapEx
$44.0M
Capital spending and related asset purchases.
FCF margin
17.9%
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 | $4.0B | $830.0M | $41.0M | $789.0M | 19.6% |
| 2025-03-31 | $3.8B | $117.0M | $46.0M | $71.0M | 1.8% |
| 2025-06-30 | $3.8B | $691.0M | $57.0M | $634.0M | 16.5% |
| 2025-09-30 | $4.2B | $796.0M | $44.0M | $752.0M | 17.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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.
Stronger Operating Cash Flow
Operating cash flow increased sequentially and year-over-year, providing the primary support for the rise in free cash flow. This improvement occurred alongside higher revenue.
The higher operating cash flow drove the free cash flow margin to its strongest level among the three periods shown.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure declined, resulting in a higher free cash flow. The free cash flow margin increased, indicating that a larger portion of revenue was converted into free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower. Versus the same quarter last year, all metrics improved, with operating cash flow and free cash flow showing notable increases.
Monitor whether the lower capital expenditure level persists, as it contributed to the free cash flow improvement this quarter.