Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared with a year ago, while free cash flow margin was slightly lower. Sequentially, all cash metrics improved markedly, with operating cash flow rising strongly.
- Operating cash flow increased relative to revenue growth, and capital expenditure was lower than a year ago, resulting in higher free cash flow. The free cash flow margin improved sequentially but remained slightly below the prior year's level.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, and the margin strengthened. Versus the same quarter one year earlier, revenue and free cash flow were higher, but the margin weakened modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$527.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$639.0M
Cash generated by operations before capital spending.
CapEx
$112.0M
Capital spending and related asset purchases.
FCF margin
12.2%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $4.1B | $849.0M | $165.0M | $684.0M | 16.8% |
| 2025-03-31 | $3.6B | $209.0M | $120.0M | $89.0M | 2.4% |
| 2025-06-30 | $4.2B | $431.0M | $106.0M | $325.0M | 7.8% |
| 2025-09-30 | $4.3B | $639.0M | $112.0M | $527.0M | 12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 79.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Sequential Operating Cash Flow
Operating cash flow increased substantially from the prior quarter, driving a sharp improvement in free cash flow despite a small rise in capital expenditure. This was the strongest observable factor in the quarter.
The higher operating cash flow more than offset the increase in capital spending, lifting free cash flow and margin sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue growth, and capital expenditure was lower than a year ago, resulting in higher free cash flow. The free cash flow margin improved sequentially but remained slightly below the prior year's level.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, and the margin strengthened. Versus the same quarter one year earlier, revenue and free cash flow were higher, but the margin weakened modestly.
Monitor whether the free cash flow margin can sustain its sequential improvement relative to the prior year's level.