Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter a year ago. Free cash flow margin weakened sequentially and declined year-over-year, as operating cash flow did not keep pace with revenue growth and capital expenditure increased.
- Operating cash flow was higher than the previous quarter but lower than the year-ago quarter. After deducting capital expenditure, free cash flow was slightly lower than the prior quarter and significantly lower than the year-ago quarter, resulting in a free cash flow margin that narrowed.
- Compared to the immediately preceding quarter, revenue was stable, operating cash flow improved, and capital expenditure increased, leading to a slightly lower free cash flow. Versus the same quarter a year earlier, revenue was higher, but operating cash flow and free cash flow were both lower, and the free cash flow margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$917.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$199.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$298.2M
Cash generated by operations before capital spending.
CapEx
$98.7M
Capital spending and related asset purchases.
FCF margin
13.3%
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 | $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% |
| 2025-12-31 | $1.5B | $298.2M | $98.7M | $199.5M | 13.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 103.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 operating cash flow decline
Operating cash flow was lower than the same quarter last year even though revenue was higher. The company's filing indicates that the nine-month operating cash flow improvement was due to higher earnings, but on a quarterly basis, the conversion weakened.
The free cash flow margin contracted from the prior year, reducing cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the previous quarter but lower than the year-ago quarter. After deducting capital expenditure, free cash flow was slightly lower than the prior quarter and significantly lower than the year-ago quarter, resulting in a free cash flow margin that narrowed.
Compared to the immediately preceding quarter, revenue was stable, operating cash flow improved, and capital expenditure increased, leading to a slightly lower free cash flow. Versus the same quarter a year earlier, revenue was higher, but operating cash flow and free cash flow were both lower, and the free cash flow margin declined.
Monitor the trajectory of operating cash flow relative to revenue, as it declined year-over-year despite higher revenue.