Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from the previous quarter but was higher than the same quarter a year earlier, primarily reflecting a shift in operating cash flow. The free cash flow margin narrowed sequentially as revenue grew while operating cash flow declined.
- Revenue increased slightly, but operating cash flow declined, resulting in a lower free cash flow margin. With capital expenditure remaining at zero, all operating cash flow converted directly into free cash flow.
- Compared with the prior quarter, operating cash flow and free cash flow both weakened despite higher revenue. Versus the same quarter last year, operating cash flow improved, though free cash flow data for that prior period is unavailable for a full comparison.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$258.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$258.4M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
47.6%
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 | $536.6M | $223.8M | $18.4M | $205.4M | 38.3% |
| 2025-06-30 | $525.2M | $305.4M | $0 | $305.4M | 58.2% |
| 2025-09-30 | $535.9M | $332.4M | $0 | $332.4M | 62.0% |
| 2025-12-31 | $542.5M | $258.4M | $0 | $258.4M | 47.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 170.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.5B | 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 fell compared with the prior quarter, even as revenue rose, leading to a lower free cash flow total and margin. This is the most observable factor behind the sequential weakening in cash conversion.
If operating cash flow continues to decline, free cash flow may come under further pressure without offsetting capital expenditure reductions.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased slightly, but operating cash flow declined, resulting in a lower free cash flow margin. With capital expenditure remaining at zero, all operating cash flow converted directly into free cash flow.
Compared with the prior quarter, operating cash flow and free cash flow both weakened despite higher revenue. Versus the same quarter last year, operating cash flow improved, though free cash flow data for that prior period is unavailable for a full comparison.
Monitor the trend in operating cash flow given the sequential decline, as it directly determines free cash flow in the absence of capital expenditure.