Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the same quarter one year earlier but higher than the preceding quarter. Operating cash flow and free cash flow improved sequentially and year-over-year, resulting in a stronger free cash flow margin.
- Operating cash flow as a share of revenue was higher than both the prior quarter and the same quarter last year, driving a free cash flow margin that improved from the prior period and the year-ago period. Capital expenditure was slightly lower sequentially but higher year-over-year, yet remained modest relative to operating cash flow.
- Compared with the immediately preceding quarter, revenue increased while operating cash flow and free cash flow rose substantially, leading to a significantly higher free cash flow margin. Versus the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were higher, with an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$43.8M
Capital spending and related asset purchases.
FCF margin
25.1%
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 | $7.6B | $646.7M | $13.3M | $633.4M | 8.3% |
| 2025-03-31 | $7.7B | -$436.2M | $34.3M | -$470.5M | -6.1% |
| 2025-06-30 | $9.2B | $738.6M | $46.0M | $692.6M | 7.5% |
| 2025-09-30 | $9.7B | $2.5B | $43.8M | $2.4B | 25.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 268.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 was substantially higher than both the prior quarter and the year-ago quarter, outpacing the change in revenue. This was the strongest observable driver of the free cash flow improvement.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin to levels above both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than both the prior quarter and the same quarter last year, driving a free cash flow margin that improved from the prior period and the year-ago period. Capital expenditure was slightly lower sequentially but higher year-over-year, yet remained modest relative to operating cash flow.
Compared with the immediately preceding quarter, revenue increased while operating cash flow and free cash flow rose substantially, leading to a significantly higher free cash flow margin. Versus the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were higher, with an improved free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it was higher year-over-year despite a sequential decline.