Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the fiscal third quarter, the company's free cash flow margin weakened as operating cash flow decreased relative to revenue, while capital expenditure remained stable. The free cash flow was lower compared to both the preceding quarter and the same quarter a year earlier.
- Revenue was unchanged, but operating cash flow declined, resulting in a lower free cash flow and margin. Capital expenditure was slightly higher than the prior quarter, further reducing free cash flow conversion.
- Compared to the immediately preceding quarter, free cash flow and margin both decreased. Versus the same quarter last year, free cash flow and margin were also lower, while revenue was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$598.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$768.7M
Cash generated by operations before capital spending.
CapEx
$169.8M
Capital spending and related asset purchases.
FCF margin
29.8%
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 | $1.9B | $883.4M | $184.0M | $699.4M | 36.2% |
| 2025-03-31 | $1.8B | $555.1M | $127.6M | $427.5M | 23.5% |
| 2025-06-30 | $2.0B | $817.5M | $152.2M | $665.4M | 34.0% |
| 2025-09-30 | $2.0B | $768.7M | $169.8M | $598.9M | 29.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.7B | 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 Weakening
Operating cash flow decreased from both the prior quarter and the year-ago period, while revenue remained constant. The filing notes that operating cash flows are a key source of liquidity, underscoring the importance of this trend.
Sustained operating cash flow weakness could pressure future free cash flow generation if not reversed.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged, but operating cash flow declined, resulting in a lower free cash flow and margin. Capital expenditure was slightly higher than the prior quarter, further reducing free cash flow conversion.
Compared to the immediately preceding quarter, free cash flow and margin both decreased. Versus the same quarter last year, free cash flow and margin were also lower, while revenue was stable.
Monitor the trajectory of operating cash flow, as it has declined for two consecutive comparative periods despite flat revenue.