Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, leading to a higher free cash flow and margin. Versus the same quarter last year, free cash flow and margin were lower despite similar revenue, as operating cash flow declined.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. After deducting capital expenditure, free cash flow margin followed the same pattern, reflecting the change in cash generation efficiency.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Compared to the same quarter one year earlier, revenue was stable, but operating cash flow, free cash flow, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$910.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$460.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$543.0M
Cash generated by operations before capital spending.
CapEx
$83.0M
Capital spending and related asset purchases.
FCF margin
19.2%
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 | $2.1B | $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% |
| 2025-12-31 | $2.4B | $543.0M | $83.0M | $460.0M | 19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 137.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$475.0M | 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 Decline
The year-over-year decrease in operating cash flow was the primary factor behind the lower free cash flow and margin, as revenue remained similar. The filing context notes that the full-year operating cash flow decrease was driven by increased spending on long-term outsourced water projects, liquidation of customer advances and deferred revenue, increased payments for strategic investments, and higher restructuring payments, partially offset by higher cash earnings and decreased investment in net working capital.
This driver weakened free cash flow generation compared to 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 as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. After deducting capital expenditure, free cash flow margin followed the same pattern, reflecting the change in cash generation efficiency.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Compared to the same quarter one year earlier, revenue was stable, but operating cash flow, free cash flow, and margin weakened.
Monitor the trend in operating cash flow relative to revenue, as it declined year-over-year despite stable revenue.