Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and margin improved sequentially, driven by a sharp increase in operating cash flow, though capital expenditure also rose. Compared to the same quarter last year, free cash flow and margin declined as operating cash flow weakened and capital spending grew. Management stated in the liquidity discussion that current cash and credit facilities are sufficient to meet near-term needs, and the company plans to continue investing and returning cash to shareholders.
- Cash conversion, measured by operating cash flow as a percentage of revenue, improved from the prior quarter but was lower than the year-ago period. Together with higher capital expenditure, the free cash flow margin narrowed relative to last year.
- Sequentially, revenue, operating cash flow, free cash flow, and margin all improved. Year over year, revenue increased but operating cash flow, free cash flow, and margin declined, reflecting lower cash generation and higher investment spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$339.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$597.0M
Cash generated by operations before capital spending.
CapEx
$258.0M
Capital spending and related asset purchases.
FCF margin
7.3%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $4.2B | $428.0M | $258.0M | $170.0M | 4.0% |
| 2025-03-31 | $4.3B | $646.0M | $125.0M | $521.0M | 12.1% |
| 2025-06-30 | $4.6B | $377.0M | $175.0M | $202.0M | 4.4% |
| 2025-09-30 | $4.7B | $597.0M | $258.0M | $339.0M | 7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | 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 recovery
Operating cash flow rebounded significantly from the prior quarter, supporting free cash flow improvement. However, it remained below the level of the same quarter last year.
Continued strength in operating cash flow will be crucial for sustaining free cash flow amid rising capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion, measured by operating cash flow as a percentage of revenue, improved from the prior quarter but was lower than the year-ago period. Together with higher capital expenditure, the free cash flow margin narrowed relative to last year.
Sequentially, revenue, operating cash flow, free cash flow, and margin all improved. Year over year, revenue increased but operating cash flow, free cash flow, and margin declined, reflecting lower cash generation and higher investment spending.
Monitor the trajectory of capital expenditure, which increased substantially from both the prior quarter and the year-ago period, and its impact on future free cash flow.