Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the year-ago quarter, while free cash flow margin weakened. The company's liquidity position remains supported by strong cash flow and credit facilities, with no borrowings outstanding.
- Operating cash flow was lower relative to revenue, resulting in a weaker free cash flow margin than both the immediately preceding quarter and the same quarter one year earlier. Capital expenditure also decreased, but the decline in operating cash flow was the primary driver of the lower free cash flow.
- Revenue was stable sequentially and higher year-over-year. Operating cash flow was lower than both the prior quarter and the year-ago quarter, leading to a lower free cash flow and margin. Capital expenditure was slightly lower than both comparative periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$858.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$963.0M
Cash generated by operations before capital spending.
CapEx
$105.0M
Capital spending and related asset purchases.
FCF margin
21.0%
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 | $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% |
| 2025-12-31 | $4.1B | $963.0M | $105.0M | $858.0M | 21.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.8B | 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
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter, despite stable revenue. This reduction was the primary observable factor behind the decline in free cash flow and margin.
The weaker operating cash flow was the strongest driver of the lower free cash flow generation in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower relative to revenue, resulting in a weaker free cash flow margin than both the immediately preceding quarter and the same quarter one year earlier. Capital expenditure also decreased, but the decline in operating cash flow was the primary driver of the lower free cash flow.
Revenue was stable sequentially and higher year-over-year. Operating cash flow was lower than both the prior quarter and the year-ago quarter, leading to a lower free cash flow and margin. Capital expenditure was slightly lower than both comparative periods.
Monitor operating cash flow relative to revenue, as its decline drove the weakened free cash flow margin.