Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sequentially but improved versus the prior year. Lower revenue and operating cash flow drove the quarter-over-quarter decline, while reduced capital spending supported a year-over-year recovery.
- Operating cash flow contracted from the preceding quarter, contributing to a narrower free cash flow margin. Capital expenditure was significantly lower than both the prior quarter and the year-ago period, which partly offset the decline in operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, with the free cash flow margin weakening. Relative to the same quarter one year earlier, revenue was slightly higher and free cash flow improved markedly, supported by both higher operating cash flow and lower capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$269.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$395.0M
Cash generated by operations before capital spending.
CapEx
$126.0M
Capital spending and related asset purchases.
FCF margin
6.1%
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 | $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% |
| 2025-12-31 | $4.4B | $395.0M | $126.0M | $269.0M | 6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential decline in operating cash flow
Operating cash flow decreased compared to the prior quarter, while capital spending also fell. The combination led to a lower free cash flow and margin.
If operating cash flow continues to decline, it could constrain future free cash flow generation even with disciplined capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow contracted from the preceding quarter, contributing to a narrower free cash flow margin. Capital expenditure was significantly lower than both the prior quarter and the year-ago period, which partly offset the decline in operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, with the free cash flow margin weakening. Relative to the same quarter one year earlier, revenue was slightly higher and free cash flow improved markedly, supported by both higher operating cash flow and lower capital spending.
Monitor the trajectory of operating cash flow, which declined sequentially despite a year-over-year increase.