Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the prior quarter and the year-ago quarter, driven by higher operating cash flow. The free cash flow margin expanded significantly compared to both periods.
- Revenue was stable compared to a year ago and slightly higher than the prior quarter. Operating cash flow increased substantially relative to both comparison periods, while capital expenditure rose moderately. The resulting free cash flow and free cash flow margin both improved markedly.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow was higher. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$377.0M
Capital spending and related asset purchases.
FCF margin
17.4%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $6.4B | $709.0M | $300.0M | $409.0M | 6.4% |
| 2025-06-30 | $6.9B | $510.0M | $301.0M | $209.0M | 3.0% |
| 2025-09-30 | $7.0B | $929.0M | $295.0M | $634.0M | 9.0% |
| 2025-12-31 | $7.4B | $1.7B | $377.0M | $1.3B | 17.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 146.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | 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 Strength
Operating cash flow was the strongest observable driver, rising significantly from both the prior quarter and the year-ago quarter. This increase was the primary factor behind the improvement in free cash flow and free cash flow margin.
Higher operating cash flow directly boosted free cash flow and expanded 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 stable compared to a year ago and slightly higher than the prior quarter. Operating cash flow increased substantially relative to both comparison periods, while capital expenditure rose moderately. The resulting free cash flow and free cash flow margin both improved markedly.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow was higher. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow was higher.
Monitor the trend in capital expenditure, which increased sequentially and year-over-year, as it directly impacts free cash flow generation.