Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply compared to the prior quarter, with free cash flow margin rising. Revenue was stable sequentially but higher than a year ago, while operating cash flow strengthened.
- Operating cash flow increased relative to the prior quarter, more than offsetting a modest rise in capital expenditure, resulting in higher free cash flow and an improved margin.
- Compared to the immediately preceding quarter, free cash flow and margin were significantly higher, driven by stronger operating cash flow. Versus the same quarter one year earlier, revenue was higher and free cash flow also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$904.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$117.0M
Capital spending and related asset purchases.
FCF margin
22.3%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $3.9B | $1.1B | $118.0M | $996.0M | 25.3% |
| 2025-03-31 | $3.8B | $592.0M | $96.0M | $496.0M | 12.9% |
| 2025-06-30 | $4.1B | $550.0M | $101.0M | $449.0M | 11.1% |
| 2025-09-30 | $4.1B | $1.0B | $117.0M | $904.0M | 22.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.0B | 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 Improvement
Operating cash flow rose substantially from the prior quarter, contributing to a large increase in free cash flow. Compared to the year-ago quarter, operating cash flow was also higher.
The stronger cash generation enabled a higher free cash flow margin and improved overall liquidity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to the prior quarter, more than offsetting a modest rise in capital expenditure, resulting in higher free cash flow and an improved margin.
Compared to the immediately preceding quarter, free cash flow and margin were significantly higher, driven by stronger operating cash flow. Versus the same quarter one year earlier, revenue was higher and free cash flow also improved.
Monitor the trend in capital expenditure, which increased slightly from both the prior quarter and the year-ago period.