Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year, while free cash flow remained stable. The free cash flow margin narrowed slightly as revenue growth outpaced the increase in operating cash flow.
- Operating cash flow was unchanged from both the prior quarter and the year-ago quarter, while capital expenditure decreased. As a result, free cash flow was stable, but the free cash flow margin declined because revenue increased without a corresponding rise in operating cash flow.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was stable, capital expenditure was lower, free cash flow was stable, and the free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was stable, capital expenditure was lower, free cash flow was stable, and the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$78.0M
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $5.7B | $2.6B | $90.0M | $2.5B | 44.5% |
| 2025-03-31 | $5.3B | -$1.1B | $78.0M | -$1.2B | -22.9% |
| 2025-06-30 | $5.4B | $1.4B | $89.0M | $1.3B | 23.5% |
| 2025-09-30 | $6.5B | $1.4B | $78.0M | $1.3B | 20.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue increased compared to both the prior quarter and the year-ago quarter, providing a larger base for cash generation. This was the strongest observable driver of free cash flow stability.
Higher revenue supported stable free cash flow despite unchanged operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was unchanged from both the prior quarter and the year-ago quarter, while capital expenditure decreased. As a result, free cash flow was stable, but the free cash flow margin declined because revenue increased without a corresponding rise in operating cash flow.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was stable, capital expenditure was lower, free cash flow was stable, and the free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was stable, capital expenditure was lower, free cash flow was stable, and the free cash flow margin was lower.
Monitor whether operating cash flow can grow in line with revenue, as the current stable cash conversion rate has led to a declining free cash flow margin.