Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow converted at a higher margin quarter over quarter, though both revenue and free cash flow were lower than the prior year quarter. Operating cash flow improved sequentially but remained below the year-ago level.
- Revenue declined slightly from the preceding quarter, yet operating cash flow rose sharply, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure increased moderately but remained a small proportion of operating cash flow.
- Compared with the prior quarter, cash conversion strengthened as operating cash flow and free cash flow both increased. Versus the same quarter one year earlier, all cash flow metrics were lower, though the decline in free cash flow was smaller relative to the drop in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$298.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$328.3M
Cash generated by operations before capital spending.
CapEx
$29.8M
Capital spending and related asset purchases.
FCF margin
5.2%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $5.2B | $345.3M | $28.6M | $316.7M | 6.1% |
| 2025-03-31 | $5.2B | $287.2M | $26.9M | $260.3M | 5.0% |
| 2025-06-30 | $6.0B | $155.9M | $22.5M | $133.4M | 2.2% |
| 2025-09-30 | $5.7B | $328.3M | $29.8M | $298.5M | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Cash Generation
Operating cash flow rose significantly from the preceding quarter, driving free cash flow higher despite a slight revenue decrease. The free cash flow margin expanded, indicating more efficient conversion of revenue into cash.
The quarter demonstrated improved cash generation efficiency relative to the prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined slightly from the preceding quarter, yet operating cash flow rose sharply, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure increased moderately but remained a small proportion of operating cash flow.
Compared with the prior quarter, cash conversion strengthened as operating cash flow and free cash flow both increased. Versus the same quarter one year earlier, all cash flow metrics were lower, though the decline in free cash flow was smaller relative to the drop in operating cash flow.
Monitor the trajectory of operating cash flow given its sequential improvement contrasted with the year-over-year decline.