Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased significantly compared to both the preceding quarter and the same quarter one year earlier, driven by higher revenue and operating cash flow. The free cash flow margin remained above the year-ago level, though it was slightly lower than the prior quarter.
- Revenue rose from the prior quarter and from the year-ago quarter, while operating cash flow followed a similar upward trajectory. Capital expenditure decreased sequentially but increased compared to the year-ago period, resulting in free cash flow that was higher than both comparatives. The free cash flow margin improved substantially year-over-year and was broadly stable sequentially.
- Compared to the preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow was higher, though the free cash flow margin was slightly lower. Versus the same quarter one year earlier, all metrics were higher, with the free cash flow margin showing a notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$257.2M
Capital spending and related asset purchases.
FCF margin
19.6%
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 | $4.3B | $847.1M | $199.8M | $647.3M | 15.0% |
| 2025-03-31 | $4.8B | $764.9M | $188.6M | $576.3M | 12.0% |
| 2025-06-30 | $5.7B | $1.4B | $297.1M | $1.1B | 19.8% |
| 2025-09-30 | $6.2B | $1.5B | $257.2M | $1.2B | 19.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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 expansion
Revenue was higher than both the prior quarter and the year-ago quarter, a primary factor behind the increase in operating cash flow and free cash flow.
Higher revenue contributed to a larger free cash flow base and an improved free cash flow margin compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter and from the year-ago quarter, while operating cash flow followed a similar upward trajectory. Capital expenditure decreased sequentially but increased compared to the year-ago period, resulting in free cash flow that was higher than both comparatives. The free cash flow margin improved substantially year-over-year and was broadly stable sequentially.
Compared to the preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow was higher, though the free cash flow margin was slightly lower. Versus the same quarter one year earlier, all metrics were higher, with the free cash flow margin showing a notable improvement.
Monitor the trend in capital expenditure relative to operating cash flow, as it influences free cash flow generation.