Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter and turned positive versus a year ago, driving a strong free cash flow margin. Revenue was slightly lower sequentially but higher year over year, while capital expenditure increased from both comparison periods.
- Revenue conversion into operating cash flow strengthened significantly, as operating cash flow rose relative to revenue compared to both the prior quarter and the same quarter last year. The resulting free cash flow margin improved markedly from both periods.
- Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow and free cash flow were substantially higher, with capital expenditure also higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow turned from negative to positive, and free cash flow improved from negative to positive, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$487.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$236.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$305.2M
Cash generated by operations before capital spending.
CapEx
$69.0M
Capital spending and related asset purchases.
FCF margin
13.9%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $1.6B | $279.0M | $54.1M | $224.9M | 14.2% |
| 2025-06-30 | $1.5B | -$44.7M | $25.1M | -$69.8M | -4.6% |
| 2025-09-30 | $1.8B | $128.4M | $31.9M | $96.5M | 5.4% |
| 2025-12-31 | $1.7B | $305.2M | $69.0M | $236.2M | 13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -254.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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.
Operating Cash Flow Recovery
Operating cash flow improved substantially from the prior quarter and turned positive from a negative level a year ago, providing the primary lift to free cash flow. This occurred even as revenue was slightly lower sequentially.
The improvement in operating cash flow was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow strengthened significantly, as operating cash flow rose relative to revenue compared to both the prior quarter and the same quarter last year. The resulting free cash flow margin improved markedly from both periods.
Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow and free cash flow were substantially higher, with capital expenditure also higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow turned from negative to positive, and free cash flow improved from negative to positive, while capital expenditure was higher.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter, as it directly impacts free cash flow.