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 both sequentially and year over year. The company's filing highlights its large installed base, aftermarket services revenue, and lean operating model.
- Revenue growth drove higher operating cash flow, and with capital expenditure essentially stable, free cash flow increased. The free cash flow margin expanded as a result.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was slightly lower. Versus the same quarter last year, all key metrics improved, with free cash flow margin notably stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$307.0M
Capital spending and related asset purchases.
FCF margin
18.0%
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 | $9.9B | $1.3B | $267.0M | $1.0B | 10.4% |
| 2025-03-31 | $9.9B | $1.5B | $208.0M | $1.3B | 13.1% |
| 2025-06-30 | $11.0B | $2.2B | $327.0M | $1.9B | 17.4% |
| 2025-09-30 | $12.2B | $2.5B | $307.0M | $2.2B | 18.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 Growth
Operating cash flow grew notably sequentially and year over year, supported by higher revenue. The company's filing notes its aftermarket services business, which represents a large portion of revenue, and its lean operating model.
Strong operating cash flow was the primary driver of the 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.
Revenue growth drove higher operating cash flow, and with capital expenditure essentially stable, free cash flow increased. The free cash flow margin expanded as a result.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was slightly lower. Versus the same quarter last year, all key metrics improved, with free cash flow margin notably stronger.
Monitor the trend in capital expenditure as it increased year over year, though it remained stable sequentially.