Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially, while operating cash flow improved, leading to higher free cash flow and margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with margin also improved.
- Operating cash flow rose while revenue was stable sequentially, and capital expenditure increased modestly, resulting in a higher free cash flow margin. Compared to the year-ago quarter, operating cash flow and revenue both increased, with free cash flow margin improving as capital expenditure was lower.
- Sequentially, revenue was stable, operating cash flow improved, and free cash flow rose, leading to a higher margin. Year-over-year, all metrics were higher, with the exception of capital expenditure which was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$291.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$311.0M
Cash generated by operations before capital spending.
CapEx
$20.0M
Capital spending and related asset purchases.
FCF margin
20.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $1.4B | $311.0M | $20.0M | $291.0M | 20.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$642.0M | 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 Improvement
Operating cash flow increased sequentially and year-over-year, while revenue was stable sequentially and higher year-over-year. This improvement was the primary factor behind the higher free cash flow and margin.
The increase in operating cash flow directly supported a higher free cash flow margin and increased available cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while revenue was stable sequentially, and capital expenditure increased modestly, resulting in a higher free cash flow margin. Compared to the year-ago quarter, operating cash flow and revenue both increased, with free cash flow margin improving as capital expenditure was lower.
Sequentially, revenue was stable, operating cash flow improved, and free cash flow rose, leading to a higher margin. Year-over-year, all metrics were higher, with the exception of capital expenditure which was slightly lower.
Capital expenditure trends, which increased sequentially but remained below the year-ago level, warrant attention for their effect on future free cash flow conversion.