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, while capital expenditure increased. Free cash flow rose slightly, and the free cash flow margin remained elevated.
- Operating cash flow was substantially higher than revenue, resulting in a free cash flow margin above four hundred percent. Capital expenditure consumed a portion of operating cash flow, but free cash flow remained strong.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure increased, and free cash flow improved slightly. Versus the same quarter one year earlier, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow was lower with a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$994.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$465.5M
Capital spending and related asset purchases.
FCF margin
403.6%
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 | $2.5B | $1.2B | $443.4M | $755.6M | 29.7% |
| 2025-03-31 | $226.0M | $1.3B | $331.1M | $963.9M | 426.5% |
| 2025-06-30 | $243.7M | $1.3B | $304.6M | $976.9M | 400.9% |
| 2025-09-30 | $246.4M | $1.5B | $465.5M | $994.5M | 403.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 188.9% | 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.
Revenue and Operating Cash Flow Growth
Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow improved sequentially and held steady year-over-year. This supported a higher free cash flow compared to the prior quarter.
The combination of higher revenue and stable operating cash flow provided a solid base for free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than revenue, resulting in a free cash flow margin above four hundred percent. Capital expenditure consumed a portion of operating cash flow, but free cash flow remained strong.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure increased, and free cash flow improved slightly. Versus the same quarter one year earlier, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow was lower with a weakened margin.
Monitor the trend in capital expenditure relative to operating cash flow, as the increase this quarter reduced the conversion rate.