Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved sharply versus the prior quarter and the year-ago quarter. The free cash flow margin expanded significantly over both comparison periods, driven by higher cash generation relative to revenue.
- Revenue increased while operating cash flow rose at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was relatively stable in dollar terms, so the improvement in free cash flow was largely attributable to the growth in operating cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, and the free cash flow margin strengthened notably. Versus the same quarter one year earlier, all cash flow metrics improved, with free cash flow margin expanding.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$67.0M
Capital spending and related asset purchases.
FCF margin
21.4%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $5.1B | $920.0M | $83.0M | $837.0M | 16.5% |
| 2025-03-31 | $5.1B | $400.0M | $77.0M | $323.0M | 6.3% |
| 2025-06-30 | $5.2B | $398.0M | $67.0M | $331.0M | 6.3% |
| 2025-09-30 | $5.4B | $1.2B | $67.0M | $1.2B | 21.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 423.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Strong operating cash flow growth
Operating cash flow rose from the prior quarter and the year-ago quarter, and this increase was the primary source of free cash flow improvement given stable capital expenditure.
The quarter's free cash flow margin reached a level that was higher than both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was relatively stable in dollar terms, so the improvement in free cash flow was largely attributable to the growth in operating cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, and the free cash flow margin strengthened notably. Versus the same quarter one year earlier, all cash flow metrics improved, with free cash flow margin expanding.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.