Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened slightly versus the prior year, as a higher operating cash flow was partly offset by increased capital expenditure. The free cash flow margin rose from the preceding quarter but was marginally lower than the same quarter last year.
- Revenue increased compared to both the prior quarter and the year-ago quarter. Operating cash flow grew sequentially and year-over-year, while capital expenditure was higher in both comparisons. Free cash flow rose from the previous quarter but was slightly lower than the same quarter last year, and the free cash flow margin improved sequentially but was marginally below the year-ago level.
- Compared to the immediately preceding quarter, free cash flow and margin both improved, driven by higher operating cash flow despite increased capital expenditure. Versus the same quarter one year earlier, free cash flow was slightly lower and margin marginally weaker, as a larger increase in capital expenditure offset the growth in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$449.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$543.0M
Cash generated by operations before capital spending.
CapEx
$94.0M
Capital spending and related asset purchases.
FCF margin
22.7%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $2.4B | $513.0M | $106.0M | $407.0M | 17.2% |
| 2025-03-31 | $1.8B | $404.0M | $71.0M | $333.0M | 18.6% |
| 2025-06-30 | $1.9B | $446.0M | $71.0M | $375.0M | 19.4% |
| 2025-09-30 | $2.0B | $543.0M | $94.0M | $449.0M | 22.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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 Growth
Operating cash flow increased both sequentially and year-over-year, providing the primary support for free cash flow generation in the quarter.
Higher operating cash flow drove the sequential improvement in free cash flow and margin, though it was partially offset by increased capital expenditure.
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 year-ago quarter. Operating cash flow grew sequentially and year-over-year, while capital expenditure was higher in both comparisons. Free cash flow rose from the previous quarter but was slightly lower than the same quarter last year, and the free cash flow margin improved sequentially but was marginally below the year-ago level.
Compared to the immediately preceding quarter, free cash flow and margin both improved, driven by higher operating cash flow despite increased capital expenditure. Versus the same quarter one year earlier, free cash flow was slightly lower and margin marginally weaker, as a larger increase in capital expenditure offset the growth in operating cash flow.
Monitor the trend in capital expenditure, as its increase in the current quarter outpaced the growth in operating cash flow relative to the prior year.