Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year, yet free cash flow improved significantly. The cash conversion rate strengthened, driven by a higher operating cash flow relative to revenue.
- Operating cash flow was higher than the prior quarter and the year-ago quarter, while capital expenditure remained modest. This resulted in free cash flow and free cash flow margin both improving compared to the preceding quarter and the same quarter last year.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue was lower while operating cash flow, free cash flow, and margin were all higher.
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
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$23.9M
Capital spending and related asset purchases.
FCF margin
51.0%
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 | $3.1B | $161.4M | $11.9M | $149.5M | 4.9% |
| 2025-03-31 | $3.3B | $1.1B | $29.3M | $1.1B | 32.8% |
| 2025-06-30 | $3.7B | $888.5M | $40.1M | $848.4M | 22.9% |
| 2025-09-30 | $3.1B | $1.6B | $23.9M | $1.6B | 51.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 251.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.7B | 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 higher than both the prior quarter and the year-ago quarter, despite lower revenue. This was the strongest observable driver of the improved free cash flow and margin.
The higher operating cash flow directly lifted free cash flow and margin, even with lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter and the year-ago quarter, while capital expenditure remained modest. This resulted in free cash flow and free cash flow margin both improving compared to the preceding quarter and the same quarter last year.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue was lower while operating cash flow, free cash flow, and margin were all higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future periods.