Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For this quarter, free cash flow and free cash flow margin were lower compared to both the immediately preceding quarter and the same quarter one year earlier. Revenue was stable relative to the year-ago quarter but lower than the prior quarter, while operating cash flow decreased.
- Operating cash flow relative to revenue weakened compared to both prior periods, resulting in a lower conversion of revenue into free cash flow. Capital expenditure remained consistent, so the decline in operating cash flow drove the lower free cash flow margin.
- Compared to the previous quarter, free cash flow and margin were lower, as revenue decreased and operating cash flow declined. Versus the year-ago quarter, revenue was stable but operating cash flow weakened, leading to a lower free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$347.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$515.2M
Cash generated by operations before capital spending.
CapEx
$168.2M
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $1.9B | $515.2M | $168.2M | $347.0M | 18.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 159.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.2B | 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 Decline
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter. With capital expenditure relatively unchanged, this reduction was the primary factor behind the lower free cash flow and free cash flow margin.
If operating cash flow does not improve, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow relative to revenue weakened compared to both prior periods, resulting in a lower conversion of revenue into free cash flow. Capital expenditure remained consistent, so the decline in operating cash flow drove the lower free cash flow margin.
Compared to the previous quarter, free cash flow and margin were lower, as revenue decreased and operating cash flow declined. Versus the year-ago quarter, revenue was stable but operating cash flow weakened, leading to a lower free cash flow.
Monitor the trajectory of operating cash flow, as its recent decline has compressed free cash flow generation.