Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow were higher than both the prior quarter and the year-ago quarter. The free cash flow margin improved compared to both periods.
- Operating cash flow as a proportion of revenue was higher than the previous quarter and the year-ago quarter, while capital expenditure also increased. The resulting free cash flow margin strengthened sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, every metric was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$159.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$255.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$905.0M
Cash generated by operations before capital spending.
CapEx
$650.0M
Capital spending and related asset purchases.
FCF margin
4.2%
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 | $5.3B | -$288.0M | $330.0M | -$618.0M | -11.7% |
| 2025-06-30 | $7.4B | $476.0M | $422.0M | $54.0M | 0.7% |
| 2025-09-30 | $5.0B | $605.0M | $455.0M | $150.0M | 3.0% |
| 2025-12-31 | $6.0B | $905.0M | $650.0M | $255.0M | 4.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -10.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.7B | 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 expansion
Operating cash flow increased more than capital expenditure compared with both the prior quarter and the year-ago quarter, supporting a higher free cash flow. This was the strongest observable driver of the improved conversion.
The free cash flow margin strengthened sequentially and year-over-year, reflecting a larger operating cash flow base relative to spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the previous quarter and the year-ago quarter, while capital expenditure also increased. The resulting free cash flow margin strengthened sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, every metric was also higher.
Monitor whether capital expenditure continues to rise in step with operating cash flow, as the gap between them narrowed this quarter.