Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter and higher than the same quarter last year. Operating cash flow and free cash flow both improved, resulting in a higher free cash flow margin.
- Operating cash flow increased relative to revenue, while capital expenditure was lower than a year ago but higher than the prior quarter. This combination led to higher free cash flow and an improved free cash flow margin.
- Compared to the preceding quarter, revenue was stable, operating cash flow was higher, and free cash flow was higher. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$468.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$175.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$251.1M
Cash generated by operations before capital spending.
CapEx
$76.1M
Capital spending and related asset purchases.
FCF margin
21.7%
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 | $698.0M | $129.4M | $71.3M | $58.1M | 8.3% |
| 2025-06-30 | $766.5M | $177.1M | $75.2M | $101.9M | 13.3% |
| 2025-09-30 | $804.6M | $197.2M | $63.3M | $133.9M | 16.6% |
| 2025-12-31 | $805.0M | $251.1M | $76.1M | $175.0M | 21.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $588.5M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Operating Cash Flow Generation
Operating cash flow rose more than revenue, reflecting a higher conversion of revenue into cash. This improvement was the primary reason for the increase in free cash flow and the expansion of free cash flow margin.
The company ended the quarter with a meaningfully higher free cash flow margin compared to both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, while capital expenditure was lower than a year ago but higher than the prior quarter. This combination led to higher free cash flow and an improved free cash flow margin.
Compared to the preceding quarter, revenue was stable, operating cash flow was higher, and free cash flow was higher. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower.
Monitor the trend of capital expenditure relative to operating cash flow, as capital expenditure increased sequentially.