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 the prior quarter but remained lower than the same quarter last year. The sequential rebound was driven by a strong increase in operating cash flow even as capital spending rose.
- Operating cash flow increased markedly from the prior quarter, while capital expenditure also rose. The higher operating cash flow more than offset the greater capital spending, resulting in a larger free cash flow and a higher free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Compared to the same quarter one year ago, all of these metrics were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$675.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$819.3M
Cash generated by operations before capital spending.
CapEx
$143.6M
Capital spending and related asset purchases.
FCF margin
13.9%
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 |
|---|---|---|---|---|---|
| 2025-02-23 | $4.8B | $531.9M | $103.9M | $428.0M | 8.8% |
| 2025-05-25 | $4.6B | $611.6M | $220.2M | $391.4M | 8.6% |
| 2025-08-24 | $4.5B | $397.0M | $109.5M | $287.5M | 6.4% |
| 2025-11-23 | $4.9B | $819.3M | $143.6M | $675.7M | 13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 163.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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 Rebound
Operating cash flow rose substantially from the prior quarter, providing the primary lift to free cash flow. The sequential gain was the strongest observable change in the quarter's cash generation.
If this rebound continues, it could support a higher level of free cash flow in subsequent periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased markedly from the prior quarter, while capital expenditure also rose. The higher operating cash flow more than offset the greater capital spending, resulting in a larger free cash flow and a higher free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Compared to the same quarter one year ago, all of these metrics were lower.
Monitor whether operating cash flow can sustain its sequential improvement in the coming quarters.