Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened significantly compared to both the prior quarter and the same quarter last year, driven by a lower operating cash flow relative to revenue. Revenue increased from both comparison periods, but the conversion into cash from operations declined.
- Revenue rose from the prior quarter and the year-ago quarter, yet operating cash flow was lower than both periods, resulting in a free cash flow margin that was lower than both comparisons. Capital expenditure remained stable sequentially and was slightly lower than a year ago.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, causing a weakened margin. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were lower, also resulting in a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$64.0M
Capital spending and related asset purchases.
FCF margin
15.2%
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 | $5.5B | $721.0M | $76.0M | $645.0M | 11.8% |
| 2025-03-31 | $4.8B | $3.3B | $121.0M | $3.2B | 66.4% |
| 2025-06-30 | $6.8B | $3.2B | $64.0M | $3.1B | 46.1% |
| 2025-09-30 | $9.0B | $1.4B | $64.0M | $1.4B | 15.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$487.0M | 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 Conversion
Operating cash flow was lower than both the prior quarter and the year-ago quarter, despite higher revenue. This is the strongest observable driver of the weakened free cash flow margin.
The lower operating cash flow relative to revenue directly reduced free cash flow and margin in the current quarter.
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 the year-ago quarter, yet operating cash flow was lower than both periods, resulting in a free cash flow margin that was lower than both comparisons. Capital expenditure remained stable sequentially and was slightly lower than a year ago.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, causing a weakened margin. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were lower, also resulting in a weakened margin.
Monitor the relationship between revenue growth and operating cash flow, as the current quarter shows a divergence with revenue higher but cash conversion lower.