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, while operating cash flow and free cash flow improved sequentially but were lower than the year-ago period. Free cash flow margin strengthened from the prior quarter but declined relative to the prior year.
- Revenue was converted into operating cash flow, which after capital expenditure produced free cash flow. The free cash flow margin improved sequentially, though capital expenditure was higher than both comparison periods.
- Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were higher. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$144.0M
Capital spending and related asset purchases.
FCF margin
9.4%
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 | $8.8B | -$546.0M | $64.0M | -$610.0M | -6.9% |
| 2025-06-30 | $9.6B | $57.0M | $74.0M | -$17.0M | -0.2% |
| 2025-09-30 | $10.1B | $827.0M | $84.0M | $743.0M | 7.4% |
| 2025-12-31 | $11.4B | $1.2B | $144.0M | $1.1B | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 258.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the same quarter a year earlier, providing a larger base for cash generation.
The increase in revenue was the primary factor supporting the sequential improvement in free cash flow despite higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was converted into operating cash flow, which after capital expenditure produced free cash flow. The free cash flow margin improved sequentially, though capital expenditure was higher than both comparison periods.
Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were higher. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, and margin weakened.
Monitor capital expenditure levels and future funding commitments, as the company has outlined anticipated spending for the coming year and disclosed obligations for co-investments and projects.