Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Operating cash flow and free cash flow were lower sequentially but improved year over year.
- With revenue flat sequentially, the decline in operating cash flow drove a lower free cash flow margin. Capital expenditure was modest and relatively stable across both periods.
- Compared to the prior quarter, cash conversion weakened as operating cash flow fell while revenue was unchanged. Versus the same quarter last year, cash conversion strengthened significantly with higher operating cash flow and revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$986.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$258.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$270.0M
Cash generated by operations before capital spending.
CapEx
$12.0M
Capital spending and related asset purchases.
FCF margin
18.4%
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 | $1.3B | $285.0M | $22.0M | $263.0M | 19.6% |
| 2025-04-04 | $1.3B | $157.0M | $15.0M | $142.0M | 10.7% |
| 2025-07-04 | $1.4B | $339.0M | $16.0M | $323.0M | 23.6% |
| 2025-10-03 | $1.4B | $270.0M | $12.0M | $258.0M | 18.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$897.0M | 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 cash flow improvement
Free cash flow and margin were materially higher compared to the same quarter one year earlier, driven by a sizable increase in operating cash flow with only a small rise in capital expenditure.
This is the strongest observable driver, showing a clear year-over-year improvement in cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue flat sequentially, the decline in operating cash flow drove a lower free cash flow margin. Capital expenditure was modest and relatively stable across both periods.
Compared to the prior quarter, cash conversion weakened as operating cash flow fell while revenue was unchanged. Versus the same quarter last year, cash conversion strengthened significantly with higher operating cash flow and revenue.
Monitor whether operating cash flow reverts toward the prior quarter level or remains at the current level.