Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose compared to the same quarter a year earlier. Free cash flow and its margin weakened relative to both periods, reflecting lower operating cash flow conversion.
- Operating cash flow as a percentage of revenue, after deducting capital expenditure, produced a free cash flow margin that was lower than both the prior quarter and the same quarter last year. The decline in operating cash flow was the primary factor behind the reduced free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter one year earlier, revenue increased, but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$781.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$858.0M
Cash generated by operations before capital spending.
CapEx
$77.0M
Capital spending and related asset purchases.
FCF margin
14.6%
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 | $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% |
| 2025-12-31 | $5.3B | $858.0M | $77.0M | $781.0M | 14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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.
Weaker Operating Cash Flow
Operating cash flow fell compared to both the prior quarter and the same quarter a year earlier, leading to a lower free cash flow margin. This occurred even though revenue was higher than the prior year.
The reduced operating cash flow constrained free cash flow generation for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue, after deducting capital expenditure, produced a free cash flow margin that was lower than both the prior quarter and the same quarter last year. The decline in operating cash flow was the primary factor behind the reduced free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter one year earlier, revenue increased, but operating cash flow, free cash flow, and margin were lower.
Monitor operating cash flow trends, as the quarter's conversion weakened despite higher year-over-year revenue.