Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased sequentially, driven by a notable rise in operating cash flow, even as capital expenditure also rose. Compared to the same period last year, free cash flow declined, reflecting a lower operating cash flow despite reduced capital spending.
- The company converted a higher share of revenue into free cash flow this quarter versus the prior quarter, as the free cash flow margin improved. The margin remained below the level achieved one year earlier.
- Sequentially, revenue, operating cash flow, and free cash flow all increased, while capital expenditure was higher. Year over year, revenue was stable, but operating cash flow and free cash flow were lower, and capital expenditure was reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$166.0M
Capital spending and related asset purchases.
FCF margin
35.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $3.1B | $1.3B | $166.0M | $1.1B | 35.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow improvement
Operating cash flow increased from the prior quarter, contributing to a higher free cash flow despite a larger capital outlay.
This improvement drove the sequential increase in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher share of revenue into free cash flow this quarter versus the prior quarter, as the free cash flow margin improved. The margin remained below the level achieved one year earlier.
Sequentially, revenue, operating cash flow, and free cash flow all increased, while capital expenditure was higher. Year over year, revenue was stable, but operating cash flow and free cash flow were lower, and capital expenditure was reduced.
Monitor the trend in capital expenditure, which rose sequentially and may affect future free cash flow generation.