Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased from the prior quarter and from the same quarter last year. However, free cash flow margin declined compared to both periods due to a larger increase in capital expenditure.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. After deducting capital expenditure, free cash flow margin weakened sequentially and year-over-year, reflecting a higher capital spending rate relative to operating cash generation.
- Compared to the immediately preceding quarter, revenue and operating cash flow improved, but free cash flow was lower and the margin weakened. Versus the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow was lower and the margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$351.0M
Capital spending and related asset purchases.
FCF margin
19.2%
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 | $4.7B | $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% |
| 2025-12-31 | $5.3B | $1.4B | $351.0M | $1.0B | 19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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.
Capital Expenditure Increase
Capital expenditure rose substantially from both the prior quarter and the year-ago quarter, outpacing the growth in operating cash flow. This shift reduced free cash flow despite higher revenue and operating cash generation.
The higher capital spending directly lowered free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. After deducting capital expenditure, free cash flow margin weakened sequentially and year-over-year, reflecting a higher capital spending rate relative to operating cash generation.
Compared to the immediately preceding quarter, revenue and operating cash flow improved, but free cash flow was lower and the margin weakened. Versus the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow was lower and the margin declined.
Monitor the trend in capital expenditure relative to operating cash flow, as its increase was the primary factor behind the margin compression.