Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and free cash flow margin were lower than the prior quarter but higher than the same quarter last year. The decrease from the prior quarter was accompanied by lower revenue and higher capital expenditure.
- Revenue declined from the prior quarter, while operating cash flow declined less proportionally, resulting in an improved operating cash flow margin relative to revenue. However, higher capital expenditure reduced free cash flow, and the free cash flow margin weakened compared to the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were lower, while capital expenditure was higher. Compared to the same quarter one year earlier, all metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$391.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$626.4M
Capital spending and related asset purchases.
FCF margin
20.0%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.6B | $756.3M | $591.6M | $164.7M | 10.1% |
| 2025-03-31 | $1.7B | $1.7B | $499.6M | $1.2B | 71.4% |
| 2025-06-30 | $2.6B | $1.2B | $549.6M | $692.1M | 27.1% |
| 2025-09-30 | $2.0B | $1.0B | $626.4M | $391.3M | 20.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 32.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Decline
Revenue decreased from the prior quarter, which was the most notable change among the reported metrics. This decline was associated with the lower operating cash flow and free cash flow.
The lower revenue reduced the cash generation capacity relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, while operating cash flow declined less proportionally, resulting in an improved operating cash flow margin relative to revenue. However, higher capital expenditure reduced free cash flow, and the free cash flow margin weakened compared to the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were lower, while capital expenditure was higher. Compared to the same quarter one year earlier, all metrics were higher.
Monitor the trend in capital expenditure, which increased compared to both the prior quarter and the year-ago quarter.