Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but was slightly lower than the same quarter last year. The cash conversion rate strengthened sequentially as operating cash flow rose more than capital expenditure.
- Revenue was stable compared to the prior quarter and the year-ago quarter, while operating cash flow increased from the prior quarter but was lower than the year-ago quarter. Free cash flow margin improved from the prior quarter but weakened relative to the same quarter last year.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin both improved, driven by higher operating cash flow. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower, as capital expenditure was higher and operating cash flow was lower.
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
$575.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$972.0M
Cash generated by operations before capital spending.
CapEx
$397.0M
Capital spending and related asset purchases.
FCF margin
14.1%
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 | $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% |
| 2025-12-31 | $4.1B | $972.0M | $397.0M | $575.0M | 14.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.7% | 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.
Operating Cash Flow Recovery
Operating cash flow increased from the prior quarter, which was the strongest observable driver of the improvement in free cash flow. This occurred even as revenue was slightly lower sequentially.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and the year-ago quarter, while operating cash flow increased from the prior quarter but was lower than the year-ago quarter. Free cash flow margin improved from the prior quarter but weakened relative to the same quarter last year.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin both improved, driven by higher operating cash flow. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower, as capital expenditure was higher and operating cash flow was lower.
Monitor the trend in capital expenditure, which was higher than both the prior quarter and the year-ago quarter.