Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply from the prior quarter and also fell compared to the same quarter last year, driven by a lower operating cash flow. The free cash flow margin weakened significantly versus both comparison periods.
- Revenue was lower than the prior quarter and the year-ago quarter, while operating cash flow decreased more than proportionally, resulting in a lower free cash flow and a weakened free cash flow margin. Capital expenditure was relatively stable across periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$468.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$511.9M
Cash generated by operations before capital spending.
CapEx
$43.9M
Capital spending and related asset purchases.
FCF margin
20.5%
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 | $2.4B | $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% |
| 2025-12-31 | $2.3B | $511.9M | $43.9M | $468.0M | 20.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -957.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 Decline
Operating cash flow decreased substantially from both the prior quarter and the year-ago quarter, while revenue also declined. The filing context notes that the full-year reduction in net cash flow from operations was partly due to higher worldwide tax payments driven by the timing of estimated payments.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter and the year-ago quarter, while operating cash flow decreased more than proportionally, resulting in a lower free cash flow and a weakened free cash flow margin. Capital expenditure was relatively stable across periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow.