Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and margin improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue was stable sequentially and higher year over year.
- The company converted a larger share of revenue into operating cash flow relative to the prior quarter, and after capital expenditure, the free cash flow margin strengthened.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin all improved, while capital expenditure was higher. Versus the same quarter a year earlier, all metrics were higher, with free cash flow margin showing a modest improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$155.0M
Capital spending and related asset purchases.
FCF margin
21.6%
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 | $4.9B | $1.3B | $184.0M | $1.1B | 21.9% |
| 2025-03-31 | $4.9B | $600.0M | $124.0M | $476.0M | 9.7% |
| 2025-06-30 | $5.1B | $884.0M | $108.0M | $776.0M | 15.2% |
| 2025-09-30 | $5.1B | $1.3B | $155.0M | $1.1B | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago period, providing the primary lift to free cash flow.
This stronger cash generation enhances the company's financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a larger share of revenue into operating cash flow relative to the prior quarter, and after capital expenditure, the free cash flow margin strengthened.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin all improved, while capital expenditure was higher. Versus the same quarter a year earlier, all metrics were higher, with free cash flow margin showing a modest improvement.
Monitor changes in working capital, as the company noted it affected cash flow in the first nine months.