Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin improved sequentially but weakened year over year.
- Operating cash flow rose from the prior quarter, driving a higher free cash flow, even as capital expenditure also increased. The free cash flow margin strengthened sequentially but remained below the year-ago level, reflecting a different balance between revenue growth and cash generation.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weaker free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$130.0M
Capital spending and related asset purchases.
FCF margin
30.6%
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 | $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% |
| 2025-12-31 | $7.0B | $2.3B | $130.0M | $2.1B | 30.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 190.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow improvement
Operating cash flow rose from the prior quarter, more than offsetting the increase in capital expenditure and leading to higher free cash flow.
This sequential improvement in operating cash flow was the primary factor behind the stronger free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose from the prior quarter, driving a higher free cash flow, even as capital expenditure also increased. The free cash flow margin strengthened sequentially but remained below the year-ago level, reflecting a different balance between revenue growth and cash generation.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weaker free cash flow margin.
Accounts receivable increased, as noted in the filing, which may affect future cash conversion.