Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter, but free cash flow declined as operating cash flow decreased and capital expenditure increased. Year over year, revenue was higher while free cash flow was lower, reflecting a weaker cash conversion rate.
- Cash conversion weakened as the free cash flow margin fell from both the prior quarter and the same quarter a year earlier. Operating cash flow as a share of revenue also declined, while capital expenditure rose in absolute terms.
- Compared to the prior quarter, free cash flow and margin were lower, driven by a decrease in operating cash flow and an increase in capital expenditure. Versus the same quarter a year ago, free cash flow was also lower even though revenue was higher, as operating cash flow was similar but capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$307.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$465.0M
Cash generated by operations before capital spending.
CapEx
$158.0M
Capital spending and related asset purchases.
FCF margin
10.9%
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 | $2.7B | $314.0M | $117.0M | $197.0M | 7.4% |
| 2025-06-30 | $2.8B | $544.0M | $108.0M | $436.0M | 15.8% |
| 2025-09-30 | $2.8B | $563.0M | $144.0M | $419.0M | 14.9% |
| 2025-12-31 | $2.8B | $465.0M | $158.0M | $307.0M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | 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 Decline
Operating cash flow in the current quarter was lower than both the prior quarter and the year-ago quarter, despite revenue being stable or higher. This decline was the primary factor behind the reduced free cash flow margin.
The lower operating cash flow reduced free cash flow and margin, indicating a less efficient cash conversion in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as the free cash flow margin fell from both the prior quarter and the same quarter a year earlier. Operating cash flow as a share of revenue also declined, while capital expenditure rose in absolute terms.
Compared to the prior quarter, free cash flow and margin were lower, driven by a decrease in operating cash flow and an increase in capital expenditure. Versus the same quarter a year ago, free cash flow was also lower even though revenue was higher, as operating cash flow was similar but capital expenditure was higher.
Monitor the level of operating cash flow relative to revenue, given the quarter's decline, and any changes in working capital or tax items as referenced in the company's annual filing.