Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially but weakened compared to the same quarter one year earlier. Revenue was stable from the preceding quarter and higher than the prior-year period.
- Revenue was stable sequentially, while operating cash flow increased and capital expenditure rose slightly, resulting in higher free cash flow and an improved free cash flow margin. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, leading to a lower free cash flow margin.
- Sequentially, operating cash flow, free cash flow, and free cash flow margin all improved. Year over year, operating cash flow, free cash flow, and free cash flow margin were lower, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$651.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$818.0M
Cash generated by operations before capital spending.
CapEx
$167.0M
Capital spending and related asset purchases.
FCF margin
12.6%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $4.8B | $273.0M | $197.0M | $76.0M | 1.6% |
| 2025-06-30 | $5.2B | $510.0M | $149.0M | $361.0M | 6.9% |
| 2025-09-30 | $5.2B | $584.0M | $143.0M | $441.0M | 8.5% |
| 2025-12-31 | $5.2B | $818.0M | $167.0M | $651.0M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 471.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.8B | 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 Improvement
Operating cash flow increased from the preceding quarter, driving free cash flow higher even as capital expenditure rose slightly. This was the strongest observable factor in the sequential improvement.
The improvement lifted the free cash flow margin above the prior quarter level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, while operating cash flow increased and capital expenditure rose slightly, resulting in higher free cash flow and an improved free cash flow margin. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, leading to a lower free cash flow margin.
Sequentially, operating cash flow, free cash flow, and free cash flow margin all improved. Year over year, operating cash flow, free cash flow, and free cash flow margin were lower, while revenue was higher.
Monitor the free cash flow margin relative to the same quarter one year earlier, as it weakened despite higher revenue.