Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved compared to both the prior quarter and the year-ago quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin reflected a higher proportion of revenue converted into free cash flow compared to the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue was lower while operating cash flow was slightly higher, leading to a stable free cash flow amount but an improved margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with a notably improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$73.0M
Capital spending and related asset purchases.
FCF margin
22.3%
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 | $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% |
| 2025-12-31 | $6.3B | $1.5B | $73.0M | $1.4B | 22.3% |
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 | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, even as revenue declined sequentially. This supported a higher free cash flow margin.
The stronger operating cash flow relative to revenue drove the improvement in free cash flow conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin reflected a higher proportion of revenue converted into free cash flow compared to the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue was lower while operating cash flow was slightly higher, leading to a stable free cash flow amount but an improved margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with a notably improved margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it remained stable across all three periods.