Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter but higher than the same quarter last year, driven by a shift in operating cash flow and capital expenditure. The free cash flow margin weakened sequentially but improved significantly year-over-year.
- Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure increased compared to both periods, resulting in free cash flow that was lower sequentially but higher year-over-year, with a free cash flow margin that weakened from the prior quarter but improved from the year-ago quarter.
- Compared to the prior quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow and margin were lower. Compared to the same quarter one year ago, revenue was lower, operating cash flow and free cash flow were higher, capital expenditure was higher, and free cash flow margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$848.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$579.2M
Capital spending and related asset purchases.
FCF margin
385.9%
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 | $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% |
| 2025-12-31 | $219.8M | $1.4B | $579.2M | $848.3M | 385.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 263.5% | 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.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, which reduced free cash flow relative to operating cash flow. This was the strongest observable driver of the sequential decline in free cash flow.
Higher capital expenditure directly lowered free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure increased compared to both periods, resulting in free cash flow that was lower sequentially but higher year-over-year, with a free cash flow margin that weakened from the prior quarter but improved from the year-ago quarter.
Compared to the prior quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow and margin were lower. Compared to the same quarter one year ago, revenue was lower, operating cash flow and free cash flow were higher, capital expenditure was higher, and free cash flow margin was higher.
Monitor the trend in capital expenditure, which increased relative to both the prior quarter and the year-ago quarter.