Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved compared to the same quarter last year but weakened sequentially. Revenue increased versus both periods, yet operating cash flow and free cash flow declined from the prior quarter.
- Operating cash flow of two hundred eighty-seven million dollars, less capital expenditure of eighty-six million dollars, yielded free cash flow of two hundred one million dollars and a free cash flow margin of thirteen point eight percent.
- Revenue was higher than the immediate prior quarter and the same quarter one year earlier. Operating cash flow, free cash flow, and free cash flow margin were all higher than the year-ago quarter but lower than the prior quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$961.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$201.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$287.8M
Cash generated by operations before capital spending.
CapEx
$86.5M
Capital spending and related asset purchases.
FCF margin
13.8%
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 | $1.4B | $332.8M | $89.2M | $243.6M | 17.8% |
| 2025-03-31 | $1.5B | $260.8M | $70.9M | $189.9M | 12.8% |
| 2025-06-30 | $1.4B | $420.0M | $93.6M | $326.4M | 23.5% |
| 2025-09-30 | $1.5B | $287.8M | $86.5M | $201.3M | 13.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential cash conversion weakening
Free cash flow margin declined from the prior quarter even though revenue rose. Operating cash flow decreased while capital expenditure was slightly lower, resulting in a lower free cash flow.
Lower free cash flow per dollar of revenue compared to the immediately preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of two hundred eighty-seven million dollars, less capital expenditure of eighty-six million dollars, yielded free cash flow of two hundred one million dollars and a free cash flow margin of thirteen point eight percent.
Revenue was higher than the immediate prior quarter and the same quarter one year earlier. Operating cash flow, free cash flow, and free cash flow margin were all higher than the year-ago quarter but lower than the prior quarter.
Monitor the sequential decline in free cash flow margin despite higher revenue.