Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved versus the year-ago quarter, while the free cash flow margin strengthened slightly. Compared to the prior quarter, both operating cash flow and free cash flow decreased, and the margin weakened.
- Revenue was stable compared to the year-ago quarter but lower than the preceding quarter. Operating cash flow was higher year-over-year and lower sequentially. Capital expenditure was lower than a year ago and similar to the prior quarter. Free cash flow was higher than a year earlier and lower than the prior quarter. The free cash flow margin improved versus the year-ago quarter and weakened sequentially.
- Revenue was unchanged compared to the same quarter a year ago and lower than the preceding quarter. Operating cash flow and free cash flow were higher year-over-year but lower sequentially. The free cash flow margin improved year-over-year and weakened sequentially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$853.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$915.0M
Cash generated by operations before capital spending.
CapEx
$62.0M
Capital spending and related asset purchases.
FCF margin
28.4%
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 | $3.0B | $1.5B | $194.0M | $1.3B | 43.3% |
| 2025-03-31 | $3.2B | $966.0M | $85.0M | $881.0M | 27.3% |
| 2025-06-30 | $3.3B | $1.5B | $60.0M | $1.4B | 44.3% |
| 2025-09-30 | $3.0B | $915.0M | $62.0M | $853.0M | 28.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.2B | 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 sequential decline
Operating cash flow decreased compared to the immediately preceding quarter, while revenue also decreased. The free cash flow margin narrowed sequentially, reflecting lower cash conversion relative to revenue.
This sequential weakening in cash conversion is the primary driver of the quarter's reduced free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the year-ago quarter but lower than the preceding quarter. Operating cash flow was higher year-over-year and lower sequentially. Capital expenditure was lower than a year ago and similar to the prior quarter. Free cash flow was higher than a year earlier and lower than the prior quarter. The free cash flow margin improved versus the year-ago quarter and weakened sequentially.
Revenue was unchanged compared to the same quarter a year ago and lower than the preceding quarter. Operating cash flow and free cash flow were higher year-over-year but lower sequentially. The free cash flow margin improved year-over-year and weakened sequentially.
Monitor the level of operating cash flow given its sequential decline despite stable revenue.