Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from both the prior quarter and the same quarter last year, driven by higher capital expenditure and lower operating cash flow. Revenue was stable sequentially but improved year-over-year, while free cash flow margin weakened in both comparisons.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter, while capital expenditure increased relative to revenue. This resulted in a free cash flow margin that was lower than both comparable periods.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$368.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$708.0M
Cash generated by operations before capital spending.
CapEx
$340.0M
Capital spending and related asset purchases.
FCF margin
8.9%
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 | $817.0M | $209.0M | $608.0M | 14.8% |
| 2025-03-31 | $4.1B | $327.0M | $204.0M | $123.0M | 3.0% |
| 2025-06-30 | $4.2B | $770.0M | $197.0M | $573.0M | 13.8% |
| 2025-09-30 | $4.2B | $708.0M | $340.0M | $368.0M | 8.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, absorbing a larger share of operating cash flow. This was the strongest observable driver of the decline in free cash flow.
Higher capital expenditure reduced free cash flow despite stable revenue, leading to a lower free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter, while capital expenditure increased relative to revenue. This resulted in a free cash flow margin that was lower than both comparable periods.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, and capital expenditure was higher.
Monitor the trend in capital expenditure relative to operating cash flow, as its increase has been a key factor in the decline of free cash flow.