Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow increased and capital expenditure declined, though both metrics weakened compared to the same quarter last year. The free cash flow margin strengthened from the prior quarter but fell from the year-ago level.
- Revenue was stable versus both the prior quarter and the year-ago quarter. Operating cash flow conversion improved quarter over quarter but declined year over year, while capital expenditure was lower sequentially but higher than the prior year, leading to a mixed free cash flow margin trend.
- Compared to the previous quarter, free cash flow and its margin improved due to higher operating cash flow and lower capital expenditure. Versus the same quarter a year ago, both operating cash flow and free cash flow weakened, despite revenue being unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$442.0M
Capital spending and related asset purchases.
FCF margin
28.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $5.3B | $1.9B | $442.0M | $1.5B | 28.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 185.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.4% | 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 increased sequentially while capital expenditure decreased, both contributing to the rise in free cash flow. The year-over-year decline in operating cash flow, however, remains a contrasting factor.
The sequential improvement in operating cash flow was the strongest observable driver behind the free cash flow growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus both the prior quarter and the year-ago quarter. Operating cash flow conversion improved quarter over quarter but declined year over year, while capital expenditure was lower sequentially but higher than the prior year, leading to a mixed free cash flow margin trend.
Compared to the previous quarter, free cash flow and its margin improved due to higher operating cash flow and lower capital expenditure. Versus the same quarter a year ago, both operating cash flow and free cash flow weakened, despite revenue being unchanged.
Monitor whether operating cash flow can stabilize or strengthen after the year-over-year decline, as it is the primary driver of free cash flow.