Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow was lower than the preceding quarter but higher than the same quarter one year earlier. The free cash flow margin weakened compared to both periods.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. With capital expenditure rising sequentially, free cash flow declined more than operating cash flow, and the free cash flow margin decreased from both comparison periods.
- Compared to the prior quarter, revenue and operating cash flow were lower while capital expenditure was higher, resulting in a lower free cash flow. Compared to the year-ago quarter, all metrics were higher except for the free cash flow margin, which was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$426.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$775.0M
Capital spending and related asset purchases.
FCF margin
14.4%
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 | $2.0B | $382.0M | $536.0M | -$154.0M | -7.7% |
| 2025-03-31 | $2.2B | $1.1B | $563.0M | $533.0M | 24.3% |
| 2025-06-30 | $3.7B | $1.3B | $657.0M | $665.0M | 18.0% |
| 2025-09-30 | $3.0B | $1.2B | $775.0M | $426.0M | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | 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 and capex increase
Revenue fell compared to the prior quarter while capital expenditure increased, leading to a notable drop in free cash flow. This was the most observable change among the reported metrics.
If these trends continue, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. With capital expenditure rising sequentially, free cash flow declined more than operating cash flow, and the free cash flow margin decreased from both comparison periods.
Compared to the prior quarter, revenue and operating cash flow were lower while capital expenditure was higher, resulting in a lower free cash flow. Compared to the year-ago quarter, all metrics were higher except for the free cash flow margin, which was lower.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the increase in spending this quarter reduced free cash flow conversion.