Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow and free cash flow margin improved compared to both the preceding quarter and the year-ago quarter.
- Operating cash flow was substantially higher than capital expenditure, resulting in free cash flow that closely tracked operating cash flow. The free cash flow margin improved relative to both comparison periods, indicating a higher proportion of revenue converted to free cash flow.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$69.0M
Capital spending and related asset purchases.
FCF margin
27.0%
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 | $4.1B | $1.2B | $55.0M | $1.1B | 27.6% |
| 2025-03-31 | $4.7B | $140.0M | $56.0M | $84.0M | 1.8% |
| 2025-06-30 | $4.2B | $796.0M | $64.0M | $732.0M | 17.6% |
| 2025-09-30 | $4.0B | $1.1B | $69.0M | $1.1B | 27.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 235.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.7B | 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 strength
Operating cash flow was the strongest observable driver, increasing compared to both the prior quarter and the year-ago quarter. This supported a higher free cash flow and free cash flow margin despite lower revenue sequentially.
The improvement in operating cash flow directly lifted free cash flow and the free cash flow margin for the quarter.
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 capital expenditure, resulting in free cash flow that closely tracked operating cash flow. The free cash flow margin improved relative to both comparison periods, indicating a higher proportion of revenue converted to free cash flow.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor whether the elevated operating cash flow level relative to revenue can be sustained in subsequent quarters.