Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was stable sequentially and higher year-over-year. Operating cash flow increased relative to both periods, while capital expenditure was lower than the prior quarter but higher than a year ago. The resulting free cash flow and margin improved on both comparisons.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, supported by stronger operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow higher and capital expenditure slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$925.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$281.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$360.0M
Cash generated by operations before capital spending.
CapEx
$79.0M
Capital spending and related asset purchases.
FCF margin
12.4%
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 | $2.3B | $575.0M | $100.0M | $475.0M | 21.1% |
| 2025-03-31 | $2.1B | $33.0M | $71.0M | -$38.0M | -1.8% |
| 2025-06-30 | $2.3B | $305.0M | $98.0M | $207.0M | 9.0% |
| 2025-09-30 | $2.3B | $360.0M | $79.0M | $281.0M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$784.0M | 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 Strength
Operating cash flow was the strongest observable driver, increasing from both the prior quarter and the year-ago quarter. This directly supported the improvement in free cash flow and margin.
Higher operating cash flow enabled a higher free cash flow and margin without relying on a reduction in capital expenditure from the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year-over-year. Operating cash flow increased relative to both periods, while capital expenditure was lower than the prior quarter but higher than a year ago. The resulting free cash flow and margin improved on both comparisons.
Compared to the immediately preceding quarter, free cash flow and margin were higher, supported by stronger operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow higher and capital expenditure slightly higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as it was lower sequentially but higher year-over-year.