Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both decreased from the prior quarter but improved compared to the same quarter last year. Free cash flow margin narrowed sequentially yet widened year-over-year, reflecting a mixed cash conversion performance.
- Operating cash flow as a proportion of revenue was lower than the preceding quarter but higher than the year-ago quarter, driving a similar pattern in free cash flow margin. Capital expenditure remained modest relative to operating cash flow in all periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$826.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$854.0M
Cash generated by operations before capital spending.
CapEx
$27.4M
Capital spending and related asset purchases.
FCF margin
12.0%
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 | $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% |
| 2025-12-31 | $6.9B | $854.0M | $27.4M | $826.6M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 137.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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 Decline
Operating cash flow decreased from the prior quarter, while capital expenditure also fell but to a lesser extent. This resulted in a lower free cash flow and a narrower free cash flow margin.
The sequential drop in operating cash flow was the strongest observable factor reducing free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the preceding quarter but higher than the year-ago quarter, driving a similar pattern in free cash flow margin. Capital expenditure remained modest relative to operating cash flow in all periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved.
Monitor the trajectory of operating cash flow relative to revenue, as its sequential decline drove the quarter's margin compression.