Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased versus the prior quarter and the same quarter last year. Free cash flow margin improved year-over-year but declined compared to the immediate prior quarter.
- Revenue rose while operating cash flow decreased versus the prior quarter, resulting in a lower free cash flow margin. Compared to the same quarter last year, revenue and operating cash flow both increased, and free cash flow margin improved significantly.
- Against the preceding quarter, operating cash flow and free cash flow were lower, though capital expenditure was slightly lower. Versus the same quarter one year earlier, all metrics were higher, with substantial improvement in operating cash flow and free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$22.4M
Capital spending and related asset purchases.
FCF margin
24.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $4.4B | $1.1B | $22.4M | $1.0B | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 103.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow expansion
Compared to the same quarter one year earlier, operating cash flow increased and free cash flow margin rose from a lower level. Capital expenditure was slightly higher but remained a small portion of revenue.
The year-over-year improvement in free cash flow margin was the strongest directional change among the supplied metrics.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow decreased versus the prior quarter, resulting in a lower free cash flow margin. Compared to the same quarter last year, revenue and operating cash flow both increased, and free cash flow margin improved significantly.
Against the preceding quarter, operating cash flow and free cash flow were lower, though capital expenditure was slightly lower. Versus the same quarter one year earlier, all metrics were higher, with substantial improvement in operating cash flow and free cash flow.
Monitor the relationship between revenue and operating cash flow in coming quarters, as the current quarter showed higher revenue but lower operating cash flow versus the prior quarter.