Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin were higher than the same quarter last year but lower than the preceding quarter. The company's liquidity position, as described in the filing, showed a slight decrease in total liquid assets compared to the prior year, with an increase in cash and a decrease in marketable securities.
- Revenue was higher than both prior periods. Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure decreased from both periods, contributing to free cash flow that was higher year-over-year but lower sequentially. The free cash flow margin followed a similar pattern.
- Compared to the prior quarter, operating cash flow, free cash flow, and margin weakened, while capital expenditure was slightly lower. Compared to the year-ago quarter, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$285.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$289.6M
Cash generated by operations before capital spending.
CapEx
$4.5M
Capital spending and related asset purchases.
FCF margin
67.0%
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 | $402.3M | $291.3M | $5.8M | $285.5M | 71.0% |
| 2025-06-30 | $409.9M | $202.5M | $7.8M | $194.7M | 47.5% |
| 2025-09-30 | $419.1M | $307.7M | $4.7M | $303.0M | 72.3% |
| 2025-12-31 | $425.3M | $289.6M | $4.5M | $285.1M | 67.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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
Operating cash flow increased significantly from the year-ago quarter but declined from the prior quarter, even as revenue rose. This divergence suggests a change in cash conversion efficiency.
The sequential decline in operating cash flow, relative to revenue growth, could affect free cash flow margins if the trend persists.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior periods. Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure decreased from both periods, contributing to free cash flow that was higher year-over-year but lower sequentially. The free cash flow margin followed a similar pattern.
Compared to the prior quarter, operating cash flow, free cash flow, and margin weakened, while capital expenditure was slightly lower. Compared to the year-ago quarter, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, and capital expenditure was lower.
Monitor the level of capital expenditure, as it decreased from both the prior quarter and the year-ago period and directly affects free cash flow.