Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a significant increase in operating cash flow. Compared to the same quarter last year, free cash flow also rose, supported by higher operating cash flow and a modest increase in capital expenditure.
- Revenue was stable compared to the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter and increased from the year-ago quarter, leading to a higher free cash flow margin. Capital expenditure was higher than both comparison periods.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin improved significantly, driven by a large increase in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow higher and capital expenditure slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
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
$46.2M
Capital spending and related asset purchases.
FCF margin
48.4%
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 | $2.5B | $760.9M | $39.3M | $721.6M | 29.4% |
| 2025-03-31 | $2.4B | $259.3M | $37.1M | $222.2M | 9.1% |
| 2025-06-30 | $2.6B | $160.9M | $26.6M | $134.3M | 5.1% |
| 2025-09-30 | $2.5B | $1.3B | $46.2M | $1.2B | 48.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 262.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Operating Cash Flow Surge
Operating cash flow rose sharply from the prior quarter and increased from the year-ago quarter, driving a substantial improvement in free cash flow. This was the strongest observable factor in the quarter's cash conversion.
The higher operating cash flow directly lifted free cash flow and margin, despite a modest increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter and increased from the year-ago quarter, leading to a higher free cash flow margin. Capital expenditure was higher than both comparison periods.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin improved significantly, driven by a large increase in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow higher and capital expenditure slightly higher.
Monitor operating cash flow stability, as the prior quarter showed a much lower level relative to the current quarter.