Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter with an improved margin, driven by higher operating cash flow and lower capital expenditure compared to the same quarter last year. The company's management discussion indicates its cash flow performance supports strategic investments and shareholder returns.
- Revenue was slightly lower than the prior quarter, but operating cash flow grew, and capital expenditure edged up, resulting in higher free cash flow and an improved margin.
- Compared with the preceding quarter, revenue was lower while operating cash flow, free cash flow, and margin all improved. Versus the same quarter one year earlier, every metric strengthened, with free cash flow shifting from negative to positive and the margin turning positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$420.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$260.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$380.1M
Cash generated by operations before capital spending.
CapEx
$119.4M
Capital spending and related asset purchases.
FCF margin
4.3%
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 | $5.9B | -$40.8M | $119.8M | -$160.7M | -2.7% |
| 2025-06-30 | $6.2B | $209.9M | $129.0M | $81.0M | 1.3% |
| 2025-09-30 | $6.3B | $341.6M | $101.6M | $240.0M | 3.8% |
| 2025-12-31 | $6.0B | $380.1M | $119.4M | $260.7M | 4.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -42.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 improvement
Operating cash flow increased from both the prior quarter and the year-ago quarter, providing the main observable lift to free cash flow despite a slight revenue decline.
The stronger operating cash flow was the key driver behind the positive free cash flow and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, but operating cash flow grew, and capital expenditure edged up, resulting in higher free cash flow and an improved margin.
Compared with the preceding quarter, revenue was lower while operating cash flow, free cash flow, and margin all improved. Versus the same quarter one year earlier, every metric strengthened, with free cash flow shifting from negative to positive and the margin turning positive.
Monitor the trend of capital expenditure relative to operating cash flow, as it rose from the prior quarter while revenue declined.