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 compared to the same quarter one year earlier, while the free cash flow margin improved. Sequentially, revenue and operating cash flow were higher, but capital expenditure rose sharply, leading to a slightly lower free cash flow and a weakened margin.
- Operating cash flow converted to free cash flow after capital expenditure, with the margin reflecting the relationship between free cash flow and revenue. The current quarter’s margin was higher than a year ago but lower than the prior quarter, indicating a mixed conversion efficiency.
- Compared to the previous quarter, revenue and operating cash flow were higher, but capital expenditure was significantly higher, resulting in free cash flow being slightly lower and the margin weakened. Versus the same quarter last year, all metrics were higher and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$990.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$544.0M
Capital spending and related asset purchases.
FCF margin
11.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $8.5B | $1.5B | $544.0M | $990.0M | 11.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 159.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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
Operating cash flow was higher than both the prior quarter and the same quarter last year, supporting free cash flow generation. This improvement was the primary observable factor behind the year-over-year increase in free cash flow.
The increase in operating cash flow enabled free cash flow to rise year-over-year despite higher capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted to free cash flow after capital expenditure, with the margin reflecting the relationship between free cash flow and revenue. The current quarter’s margin was higher than a year ago but lower than the prior quarter, indicating a mixed conversion efficiency.
Compared to the previous quarter, revenue and operating cash flow were higher, but capital expenditure was significantly higher, resulting in free cash flow being slightly lower and the margin weakened. Versus the same quarter last year, all metrics were higher and the margin improved.
Monitor capital expenditure levels, as the sequential increase was substantial and directly impacted free cash flow.