Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated strong free cash flow in the current quarter, with operating cash flow notably higher than both the preceding quarter and the same quarter a year earlier. Free cash flow margin also improved, reflecting efficient cash conversion relative to revenue.
- Revenue was higher than the prior quarter, while operating cash flow increased to a greater extent, leading to a higher free cash flow margin. Capital expenditure was also higher, but remained a small portion of operating cash flow, allowing most of the operating cash flow to convert into free cash flow.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Relative to the same quarter one year earlier, all metrics were also higher, with operating cash flow showing the largest relative increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$885.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$978.9M
Cash generated by operations before capital spending.
CapEx
$93.3M
Capital spending and related asset purchases.
FCF margin
30.8%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $2.0B | $303.3M | $36.5M | $266.8M | 13.1% |
| 2025-06-30 | $2.6B | $322.9M | $45.0M | $277.9M | 10.5% |
| 2025-09-30 | $2.7B | $508.7M | $45.2M | $463.5M | 17.3% |
| 2025-12-31 | $2.9B | $978.9M | $93.3M | $885.6M | 30.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 198.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow
Operating cash flow rose substantially from both the preceding quarter and the year-ago quarter, outpacing the growth in revenue. This increase was the primary factor behind the higher free cash flow and improved margin.
The higher operating cash flow directly boosted free cash flow and allowed the free cash flow margin to reach a more favorable level compared with prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, while operating cash flow increased to a greater extent, leading to a higher free cash flow margin. Capital expenditure was also higher, but remained a small portion of operating cash flow, allowing most of the operating cash flow to convert into free cash flow.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Relative to the same quarter one year earlier, all metrics were also higher, with operating cash flow showing the largest relative increase.
Capital expenditure increased compared with both prior periods; monitor whether this trend continues as it could affect future free cash flow levels.