Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased versus both the prior quarter and the same quarter last year. The free cash flow margin improved compared to both periods.
- Operating cash flow converted into free cash flow after capital expenditure, yielding a free cash flow margin that was higher than in the preceding quarter and the year-ago quarter. Capital expenditure rose from the prior quarter but fell from the same quarter a year earlier.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, every metric improved except capital expenditure, which was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$177.0M
Capital spending and related asset purchases.
FCF margin
24.4%
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 | $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% |
| 2025-12-31 | $5.2B | $1.5B | $177.0M | $1.3B | 24.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -3448.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.6B | 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 was higher than both the prior quarter and the year-ago quarter, directly supporting the increase in free cash flow and the improvement in free cash flow margin.
This was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow after capital expenditure, yielding a free cash flow margin that was higher than in the preceding quarter and the year-ago quarter. Capital expenditure rose from the prior quarter but fell from the same quarter a year earlier.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, every metric improved except capital expenditure, which was lower.
Monitor the trend in capital expenditure, as it increased from the prior quarter after declining year over year.