Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly from both the prior quarter and the same quarter last year, driven by higher revenue and operating cash flow. Capital expenditure was slightly lower than the prior quarter but higher than a year ago, yet free cash flow still grew.
- The company converted a higher proportion of revenue into free cash flow, as the free cash flow margin improved. Operating cash flow increased more than capital expenditure, leading to higher free cash flow.
- Compared to the prior quarter, revenue and operating cash flow were higher, while capital expenditure was slightly lower, resulting in higher free cash flow and margin. Versus the same quarter a year ago, all metrics improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$512.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$612.7M
Capital spending and related asset purchases.
FCF margin
21.5%
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 | $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% |
| 2025-12-31 | $2.4B | $1.1B | $612.7M | $512.7M | 21.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 25.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and Operating Cash Flow Growth
The strongest observable driver was the increase in revenue and operating cash flow, which outpaced the change in capital expenditure.
This led to a substantial 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.
The company converted a higher proportion of revenue into free cash flow, as the free cash flow margin improved. Operating cash flow increased more than capital expenditure, leading to higher free cash flow.
Compared to the prior quarter, revenue and operating cash flow were higher, while capital expenditure was slightly lower, resulting in higher free cash flow and margin. Versus the same quarter a year ago, all metrics improved significantly.
Monitor the trend of capital expenditure relative to operating cash flow, as it influences free cash flow generation.