Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially but declined from the same quarter last year. Operating cash flow increased from the prior quarter while capital expenditure also rose, resulting in higher free cash flow compared to the immediately preceding quarter.
- Revenue was lower than the previous quarter, yet operating cash flow and free cash flow increased, leading to a higher free cash flow margin. Compared to a year earlier, operating cash flow decreased and capital expenditure grew, reducing free cash flow and margin.
- Sequentially, free cash flow and margin strengthened, driven by improved cash conversion. Year-over-year, free cash flow and margin weakened as operating cash flow contracted and capital expenditure expanded.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$507.0M
Capital spending and related asset purchases.
FCF margin
24.7%
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 | $5.3B | $2.2B | $399.0M | $1.8B | 34.7% |
| 2025-03-31 | $5.1B | $648.0M | $335.0M | $313.0M | 6.1% |
| 2025-06-30 | $5.5B | $1.7B | $479.0M | $1.2B | 21.5% |
| 2025-09-30 | $5.3B | $1.8B | $507.0M | $1.3B | 24.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 163.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.6% | 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 Improvement
Operating cash flow rose compared to the prior quarter, even as revenue declined, indicating better cash conversion efficiency. This drove the increase in free cash flow and margin.
The sequential improvement in operating cash flow supported higher free cash flow generation, though the year-over-year decline remains a factor to monitor.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter, yet operating cash flow and free cash flow increased, leading to a higher free cash flow margin. Compared to a year earlier, operating cash flow decreased and capital expenditure grew, reducing free cash flow and margin.
Sequentially, free cash flow and margin strengthened, driven by improved cash conversion. Year-over-year, free cash flow and margin weakened as operating cash flow contracted and capital expenditure expanded.
Monitor the trajectory of capital expenditure relative to operating cash flow, as higher spending outpaced cash generation year-over-year.