Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, free cash flow margin improved as operating cash flow rose while revenue held steady. Both operating cash flow and free cash flow were higher than the preceding quarter and the same quarter last year.
- Revenue was stable versus the prior quarter, yet operating cash flow increased, which together with a moderate rise in capital expenditure resulted in a higher free cash flow and a stronger free cash flow margin.
- Compared to the previous quarter, free cash flow margin improved as operating cash flow increased more than capital expenditure. Versus the same quarter a year ago, free cash flow and margin were higher, driven by both higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$758.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$332.1M
Capital spending and related asset purchases.
FCF margin
18.1%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $3.7B | $369.4M | $237.9M | $131.5M | 3.6% |
| 2025-06-30 | $4.0B | $701.8M | $216.7M | $485.1M | 12.1% |
| 2025-09-30 | $4.2B | $791.3M | $261.6M | $529.7M | 12.7% |
| 2025-12-31 | $4.2B | $1.1B | $332.1M | $758.0M | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | 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 conversion
Operating cash flow increased from the prior quarter and the year-ago quarter, while revenue was stable, indicating improved cash conversion efficiency.
The higher operating cash flow was the primary factor behind the significant improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter, yet operating cash flow increased, which together with a moderate rise in capital expenditure resulted in a higher free cash flow and a stronger free cash flow margin.
Compared to the previous quarter, free cash flow margin improved as operating cash flow increased more than capital expenditure. Versus the same quarter a year ago, free cash flow and margin were higher, driven by both higher operating cash flow and lower capital expenditure.
Monitor the net debt to EBITDA ratio, which the filing shows increased for the full year compared to the prior year.