Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to the same quarter last year but weakened sequentially. Operating cash flow was the main driver of the sequential decline, while revenue was stable.
- Revenue was stable sequentially and higher year over year. Operating cash flow decreased from the prior quarter but increased from the prior year. Capital expenditure was similar to the prior quarter and higher than the prior year. Free cash flow and free cash flow margin weakened sequentially but improved compared to the same quarter last year.
- Compared to the prior quarter, free cash flow and margin were lower primarily due to lower operating cash flow. Compared to the same quarter last year, free cash flow and margin were higher, driven by higher operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$276.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$343.3M
Cash generated by operations before capital spending.
CapEx
$67.2M
Capital spending and related asset purchases.
FCF margin
35.5%
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 | $753.0M | $444.7M | $53.7M | $391.0M | 51.9% |
| 2025-06-30 | $772.6M | $244.5M | $55.8M | $188.7M | 24.4% |
| 2025-09-30 | $768.3M | $403.5M | $67.4M | $336.1M | 43.7% |
| 2025-12-31 | $778.8M | $343.3M | $67.2M | $276.1M | 35.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 140.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.6B | 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
Operating cash flow increased compared to the prior year quarter, leading to a higher free cash flow and margin.
This was the strongest observable driver of the year-over-year improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year over year. Operating cash flow decreased from the prior quarter but increased from the prior year. Capital expenditure was similar to the prior quarter and higher than the prior year. Free cash flow and free cash flow margin weakened sequentially but improved compared to the same quarter last year.
Compared to the prior quarter, free cash flow and margin were lower primarily due to lower operating cash flow. Compared to the same quarter last year, free cash flow and margin were higher, driven by higher operating cash flow.
Monitor operating cash flow, which decreased sequentially despite stable revenue.