Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sharply both sequentially and year-over-year. The decline was driven by lower operating cash flow despite higher revenue.
- Revenue increased compared to both the prior quarter and the same quarter last year, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was higher versus both periods.
- Free cash flow and free cash flow margin were lower than both the preceding quarter and the same quarter one year earlier. The decline from the year-ago quarter was more pronounced, as both operating cash flow and margin decreased significantly from that period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$312.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$367.0M
Cash generated by operations before capital spending.
CapEx
$55.0M
Capital spending and related asset purchases.
FCF margin
10.8%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $2.6B | $723.0M | $84.0M | $639.0M | 24.7% |
| 2025-03-31 | $2.6B | $191.0M | $44.0M | $147.0M | 5.6% |
| 2025-06-30 | $2.7B | $209.0M | $39.0M | $170.0M | 6.3% |
| 2025-09-30 | $2.9B | $367.0M | $55.0M | $312.0M | 10.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 Decline
Operating cash flow decreased from both the prior quarter and the same quarter last year, despite higher revenue. This was a primary factor in the lower free cash flow and margin.
The decline in operating cash flow was the strongest observable driver of the weakened cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the same quarter last year, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was higher versus both periods.
Free cash flow and free cash flow margin were lower than both the preceding quarter and the same quarter one year earlier. The decline from the year-ago quarter was more pronounced, as both operating cash flow and margin decreased significantly from that period.
Monitor the trend in operating cash flow relative to revenue, as revenue grew but cash conversion weakened.