Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose sharply from the prior quarter and also improved from the same quarter last year, driven by a substantial increase in operating cash flow and a modest reduction in capital expenditure. The free cash flow margin strengthened accordingly, reflecting greater cash conversion efficiency.
- Revenue increased moderately while operating cash flow grew at a faster pace, leading to a higher free cash flow. Capital expenditure was slightly lower, further supporting free cash flow, and the free cash flow margin improved compared to both prior periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved, with capital expenditure lower. Compared to the same quarter one year earlier, the same pattern of improvement was observed: revenue higher, operating cash flow higher, capital expenditure lower, free cash flow higher, and margin higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$772.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$908.0M
Cash generated by operations before capital spending.
CapEx
$136.0M
Capital spending and related asset purchases.
FCF margin
18.8%
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 | $4.0B | $885.0M | $164.0M | $721.0M | 18.2% |
| 2025-03-31 | $3.8B | $568.0M | $142.0M | $426.0M | 11.1% |
| 2025-06-30 | $4.0B | $443.0M | $151.0M | $292.0M | 7.3% |
| 2025-09-30 | $4.1B | $908.0M | $136.0M | $772.0M | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 233.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow
Operating cash flow was substantially higher than both the prior quarter and the same quarter last year, growing at a faster rate than revenue. This increase was the primary driver of the free cash flow improvement.
The improved operating cash flow strengthened the company's cash generation and liquidity position, consistent with its reliance on operating cash flows as the primary liquidity source.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased moderately while operating cash flow grew at a faster pace, leading to a higher free cash flow. Capital expenditure was slightly lower, further supporting free cash flow, and the free cash flow margin improved compared to both prior periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved, with capital expenditure lower. Compared to the same quarter one year earlier, the same pattern of improvement was observed: revenue higher, operating cash flow higher, capital expenditure lower, free cash flow higher, and margin higher.
Monitor the trajectory of operating cash flow, as it was the principal driver of the free cash flow improvement and is highlighted as the company's primary liquidity source.