Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than both the prior quarter and the same quarter last year, yet free cash flow was substantially higher sequentially and year-over-year. The free cash flow margin improved sharply, indicating stronger cash conversion efficiency.
- Operating cash flow increased significantly from the prior quarter and the year-ago quarter, while capital expenditure also rose. Free cash flow benefited from the larger operating cash flow, resulting in a higher free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were both higher. Year-over-year, revenue was also slightly lower, while free cash flow and margin improved markedly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$298.0M
Capital spending and related asset purchases.
FCF margin
12.1%
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 | $8.4B | $1.4B | $540.0M | $882.0M | 10.4% |
| 2025-03-31 | $8.2B | -$3.0M | $162.0M | -$165.0M | -2.0% |
| 2025-06-30 | $8.6B | $785.0M | $231.0M | $554.0M | 6.4% |
| 2025-09-30 | $8.3B | $1.3B | $298.0M | $1.0B | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 180.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 strength
Operating cash flow rose sharply from the previous quarter and the same quarter last year, outpacing the modest decline in revenue. This was the primary factor behind the free cash flow improvement.
Free cash flow margin expanded as a result, reaching a notably higher level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased significantly from the prior quarter and the year-ago quarter, while capital expenditure also rose. Free cash flow benefited from the larger operating cash flow, resulting in a higher free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were both higher. Year-over-year, revenue was also slightly lower, while free cash flow and margin improved markedly.
Capital expenditure increased from both the prior quarter and the year-ago quarter; monitoring its trend relative to revenue and operating cash flow is warranted.