Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the prior quarter and the same quarter last year. The free cash flow margin decreased slightly from the prior quarter but remained stable relative to the year-ago period.
- Operating cash flow was higher than the year-ago quarter and stable versus the prior quarter. Capital expenditure increased modestly from both comparison periods, while free cash flow rose in line with revenue, resulting in a free cash flow margin that was slightly lower than the prior quarter but similar to the year-ago quarter.
- Compared to the prior quarter, revenue was higher while free cash flow was stable, leading to a lower free cash flow margin. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with the free cash flow margin remaining broadly stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$37.0M
Capital spending and related asset purchases.
FCF margin
49.2%
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 | $2.0B | $641.7M | $28.4M | $613.3M | 30.6% |
| 2025-06-30 | $2.2B | $1.2B | $24.0M | $1.2B | 53.3% |
| 2025-09-30 | $2.3B | $1.3B | $30.1M | $1.2B | 53.6% |
| 2025-12-31 | $2.5B | $1.3B | $37.0M | $1.2B | 49.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing the primary observable support for the increase in free cash flow.
Higher revenue directly contributed to the increase in free cash flow compared to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the year-ago quarter and stable versus the prior quarter. Capital expenditure increased modestly from both comparison periods, while free cash flow rose in line with revenue, resulting in a free cash flow margin that was slightly lower than the prior quarter but similar to the year-ago quarter.
Compared to the prior quarter, revenue was higher while free cash flow was stable, leading to a lower free cash flow margin. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with the free cash flow margin remaining broadly stable.
Monitor the trend in free cash flow margin, which declined from the prior quarter despite higher revenue.