Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow increased while revenue declined, though free cash flow margin weakened compared to the same quarter last year. The strongest driver was a rise in operating cash flow relative to the prior quarter.
- Revenue decreased from the prior quarter, but operating cash flow rose significantly, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure increased slightly, yet the cash conversion strengthened sequentially.
- Compared to the prior quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow despite lower revenue. Relative to the same quarter last year, free cash flow was slightly lower and free cash flow margin weakened, as operating cash flow declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$811.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$870.0M
Cash generated by operations before capital spending.
CapEx
$59.0M
Capital spending and related asset purchases.
FCF margin
1530.2%
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 | $50.0M | $641.0M | $40.0M | $601.0M | 1202.0% |
| 2025-06-30 | $52.0M | $832.0M | $40.0M | $792.0M | 1523.1% |
| 2025-09-30 | $60.0M | $714.0M | $43.0M | $671.0M | 1118.3% |
| 2025-12-31 | $53.0M | $870.0M | $59.0M | $811.0M | 1530.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 275.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 111.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.2B | 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 increased substantially from the prior quarter, despite lower revenue. This was the primary factor behind the sequential improvement in free cash flow and margin.
Higher operating cash flow more than offset a moderate increase in capital expenditure, resulting in stronger free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from the prior quarter, but operating cash flow rose significantly, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure increased slightly, yet the cash conversion strengthened sequentially.
Compared to the prior quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow despite lower revenue. Relative to the same quarter last year, free cash flow was slightly lower and free cash flow margin weakened, as operating cash flow declined.
Monitor changes in operating cash flow relative to revenue, as the quarter showed divergence with revenue falling but operating cash flow rising.