Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially while operating cash flow and free cash flow both improved year over year. The free cash flow margin strengthened compared to both the prior quarter and the same quarter last year.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in a free cash flow margin that was higher than both the preceding quarter and the year-ago quarter. The conversion from revenue to free cash flow was supported by operating cash flow that grew faster than revenue on a year-over-year basis.
- Compared to the immediately preceding quarter, revenue was unchanged while free cash flow was higher and the free cash flow margin improved slightly. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$181.0M
Capital spending and related asset purchases.
FCF margin
22.9%
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 | $4.6B | $1.5B | $277.0M | $1.2B | 25.8% |
| 2025-03-31 | $4.7B | $541.0M | $187.0M | $354.0M | 7.6% |
| 2025-06-30 | $5.1B | $1.3B | $157.0M | $1.1B | 22.3% |
| 2025-09-30 | $5.1B | $1.3B | $181.0M | $1.2B | 22.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 Growth
Operating cash flow was higher year over year and unchanged sequentially, while revenue was stable sequentially and higher year over year. This combination drove a higher free cash flow and an improved free cash flow margin compared to both the prior quarter and the year-ago quarter.
The stronger operating cash flow relative to revenue was the primary factor behind the improved free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in a free cash flow margin that was higher than both the preceding quarter and the year-ago quarter. The conversion from revenue to free cash flow was supported by operating cash flow that grew faster than revenue on a year-over-year basis.
Compared to the immediately preceding quarter, revenue was unchanged while free cash flow was higher and the free cash flow margin improved slightly. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin strengthened.
Monitor whether operating cash flow can sustain its year-over-year growth rate relative to revenue in future quarters.