Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
IQVIA’s free cash flow and margin weakened in the fourth quarter despite higher revenue compared with both the prior quarter and the same quarter a year earlier. The cash conversion rate declined as operating cash flow decreased and capital expenditure increased relative to both periods.
- Revenue rose while operating cash flow fell, leading to a lower free cash flow margin. Capital expenditure was higher than both the preceding quarter and the year-ago quarter, further pressuring cash conversion.
- Compared with the prior quarter, free cash flow and margin both weakened on lower operating cash flow and higher capital spending. Versus the same quarter last year, free cash flow and margin also declined, though revenue was higher and capital expenditure was slightly above the prior year level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$561.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$735.0M
Cash generated by operations before capital spending.
CapEx
$174.0M
Capital spending and related asset purchases.
FCF margin
12.9%
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 | $3.8B | $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% |
| 2025-12-31 | $4.4B | $735.0M | $174.0M | $561.0M | 12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.7B | 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 decline and capex increase
The quarter’s free cash flow decline was driven by a combination of lower operating cash flow and higher capital expenditure relative to both the prior quarter and the year-ago quarter. Revenue growth was insufficient to offset the cash conversion pressure.
The weakened cash conversion reduces the company’s ability to generate discretionary cash from current operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell, leading to a lower free cash flow margin. Capital expenditure was higher than both the preceding quarter and the year-ago quarter, further pressuring cash conversion.
Compared with the prior quarter, free cash flow and margin both weakened on lower operating cash flow and higher capital spending. Versus the same quarter last year, free cash flow and margin also declined, though revenue was higher and capital expenditure was slightly above the prior year level.
Monitor whether operating cash flow can recover toward prior levels to support free cash flow generation.