Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, while free cash flow margin weakened relative to both periods. Operating cash flow was lower than both the preceding quarter and the year-ago quarter, and capital expenditure rose versus the prior quarter but matched the year-ago level.
- Revenue was higher, but operating cash flow was lower, leading to a decline in free cash flow and free cash flow margin compared to both the prior quarter and the year-ago quarter. Capital expenditure increased from the prior quarter, which further reduced free cash flow conversion.
- Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$842.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$168.0M
Capital spending and related asset purchases.
FCF margin
17.3%
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 | $4.2B | $777.0M | $83.0M | $694.0M | 16.6% |
| 2025-03-31 | $4.4B | $241.0M | $87.0M | $154.0M | 3.5% |
| 2025-06-30 | $4.6B | $1.1B | $93.0M | $977.0M | 21.5% |
| 2025-09-30 | $4.9B | $1.0B | $168.0M | $842.0M | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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 Weakening
Operating cash flow was lower than both the prior quarter and the year-ago quarter, despite higher revenue. This divergence is the strongest observable driver of the decline in free cash flow and margin.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow was lower, leading to a decline in free cash flow and free cash flow margin compared to both the prior quarter and the year-ago quarter. Capital expenditure increased from the prior quarter, which further reduced free cash flow conversion.
Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the relationship between revenue growth and operating cash flow, as revenue increased but cash generation from operations declined.