Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the prior quarter and the same quarter last year, while free cash flow margin improved year over year but declined sequentially. Operating cash flow rose year over year but fell from the preceding quarter, and capital expenditure was lower than a year ago but higher than the prior quarter.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than a year ago, resulting in a free cash flow margin that improved year over year but weakened sequentially. Capital expenditure was a smaller share of operating cash flow compared to the same quarter last year, supporting free cash flow conversion.
- Compared to the immediately preceding quarter, revenue increased but operating cash flow and free cash flow both decreased, leading to a lower free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow all improved, with a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$405.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$454.0M
Cash generated by operations before capital spending.
CapEx
$49.0M
Capital spending and related asset purchases.
FCF margin
17.5%
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 | $1.9B | $364.0M | $71.0M | $293.0M | 15.6% |
| 2025-03-31 | $2.0B | $199.0M | $28.0M | $171.0M | 8.5% |
| 2025-06-30 | $2.1B | $527.0M | $38.0M | $489.0M | 22.8% |
| 2025-09-30 | $2.3B | $454.0M | $49.0M | $405.0M | 17.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 293.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow growth
Free cash flow and free cash flow margin both improved compared to the same quarter last year, driven by higher operating cash flow and lower capital expenditure.
This strengthened the cash generation profile relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than a year ago, resulting in a free cash flow margin that improved year over year but weakened sequentially. Capital expenditure was a smaller share of operating cash flow compared to the same quarter last year, supporting free cash flow conversion.
Compared to the immediately preceding quarter, revenue increased but operating cash flow and free cash flow both decreased, leading to a lower free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow all improved, with a higher free cash flow margin.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined sequentially despite higher revenue.