Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the same quarter one year earlier but decreased from the previous quarter. Free cash flow and its margin were lower than both prior periods.
- Operating cash flow was lower than both the previous quarter and the same quarter one year earlier, while capital expenditure was lower than the previous quarter but higher than the year-ago quarter. As a result, free cash flow and free cash flow margin declined relative to both comparison periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all decreased. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin were lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$602.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$699.0M
Cash generated by operations before capital spending.
CapEx
$97.0M
Capital spending and related asset purchases.
FCF margin
13.9%
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 | $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% |
| 2025-12-31 | $4.3B | $699.0M | $97.0M | $602.0M | 13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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.
Free cash flow margin decline
Free cash flow margin decreased from both the previous quarter and the same quarter one year earlier, reflecting a larger proportional drop in free cash flow relative to revenue.
Sustained lower free cash flow margin could indicate reduced cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the previous quarter and the same quarter one year earlier, while capital expenditure was lower than the previous quarter but higher than the year-ago quarter. As a result, free cash flow and free cash flow margin declined relative to both comparison periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all decreased. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin were lower, while capital expenditure was higher.
Monitor the trajectory of free cash flow margin, as it weakened against both prior periods.