Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow despite a slight increase in capital expenditure. The free cash flow margin strengthened versus the year-ago period but weakened sequentially.
- Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow was lower than the preceding quarter but higher than the same quarter last year, while capital expenditure was slightly lower than both periods. Free cash flow and free cash flow margin followed the same pattern as operating cash flow.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, driven by a decrease in operating cash flow. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, supported by an increase in operating cash flow and a reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$296.0M
Capital spending and related asset purchases.
FCF margin
23.6%
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 | $6.3B | $322.0M | $492.0M | -$170.0M | -2.7% |
| 2025-03-31 | $6.1B | -$342.0M | $291.0M | -$633.0M | -10.3% |
| 2025-06-30 | $6.3B | $4.3B | $305.0M | $4.0B | 63.0% |
| 2025-09-30 | $6.4B | $1.8B | $296.0M | $1.5B | 23.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1400.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.4B | 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 Improvement
Operating cash flow was higher than the same quarter last year, which directly supported the increase in free cash flow and free cash flow margin on a year-over-year basis.
This driver was the strongest observable factor in the year-over-year improvement in cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow was lower than the preceding quarter but higher than the same quarter last year, while capital expenditure was slightly lower than both periods. Free cash flow and free cash flow margin followed the same pattern as operating cash flow.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, driven by a decrease in operating cash flow. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, supported by an increase in operating cash flow and a reduction in capital expenditure.
Monitor the trend in operating cash flow, as its sequential decline was the primary factor behind the weakening free cash flow margin.