Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as revenue and operating cash flow both rose, though capital expenditure also increased. Compared to the same quarter last year, free cash flow was lower despite higher revenue, driven by a weaker cash conversion rate.
- Revenue increased while operating cash flow grew at a slower pace, resulting in a lower free cash flow margin relative to the prior year quarter. The sequential margin was stable, indicating consistent cash generation efficiency from the preceding quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure also higher. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$564.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$712.0M
Cash generated by operations before capital spending.
CapEx
$148.0M
Capital spending and related asset purchases.
FCF margin
12.5%
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 | $3.6B | $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% |
| 2025-12-31 | $4.5B | $712.0M | $148.0M | $564.0M | 12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 159.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential free cash flow improvement
Free cash flow increased from the prior quarter, supported by higher operating cash flow that more than offset a rise in capital expenditure. The free cash flow margin remained broadly stable sequentially.
This sequential improvement reflects stronger cash generation in the current quarter relative to the immediate prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew at a slower pace, resulting in a lower free cash flow margin relative to the prior year quarter. The sequential margin was stable, indicating consistent cash generation efficiency from the preceding quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure also higher. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and capital expenditure was lower.
Monitor the relationship between revenue growth and operating cash flow, as the current quarter showed a lower conversion rate compared to the prior year.