Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the prior quarter and also rose compared to the same quarter last year. The cash conversion rate strengthened significantly, driven by a large increase in operating cash flow relative to revenue.
- Revenue was slightly higher than the prior quarter and higher than a year ago. Operating cash flow increased substantially from both comparison periods, leading to a much higher free cash flow and free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were markedly higher. Versus the same quarter one year earlier, both free cash flow and margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$870.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$992.0M
Cash generated by operations before capital spending.
CapEx
$122.0M
Capital spending and related asset purchases.
FCF margin
29.3%
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 | $2.6B | $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% |
| 2025-12-31 | $3.0B | $992.0M | $122.0M | $870.0M | 29.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 430.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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 Surge
Operating cash flow rose sharply from the prior quarter and from the year-ago quarter, far outpacing the increase in revenue. This was the strongest observable driver of the improved free cash flow.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin to their highest levels among the three periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter and higher than a year ago. Operating cash flow increased substantially from both comparison periods, leading to a much higher free cash flow and free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were markedly higher. Versus the same quarter one year earlier, both free cash flow and margin also improved.
Monitor the trend in capital expenditure, which was higher in the current quarter than in both comparison periods.