Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were higher than both the prior quarter and the same quarter last year. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure increased compared to both periods.
- Operating cash flow as a proportion of revenue weakened from the prior quarter but improved versus the same quarter last year. The free cash flow margin narrowed sequentially due to higher capital expenditure relative to operating cash flow, yet it was slightly lower than the year-ago margin.
- Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, resulting in a lower free cash flow and a weakened margin. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$621.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$793.0M
Capital spending and related asset purchases.
FCF margin
16.7%
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 | $3.6B | $1.5B | $772.0M | $738.0M | 20.7% |
| 2025-03-31 | $3.9B | $1.2B | $766.0M | $396.0M | 10.3% |
| 2025-06-30 | $3.6B | $1.6B | $647.0M | $1.0B | 27.8% |
| 2025-09-30 | $3.7B | $1.4B | $793.0M | $621.0M | 16.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$32.5B | 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 rose compared to both the prior quarter and the same quarter last year, outpacing the growth in operating cash flow. This was the strongest observable driver of the sequential decline in free cash flow and margin.
Higher capital expenditure absorbed a larger share of operating cash flow, reducing free cash flow and compressing the 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 weakened from the prior quarter but improved versus the same quarter last year. The free cash flow margin narrowed sequentially due to higher capital expenditure relative to operating cash flow, yet it was slightly lower than the year-ago margin.
Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, resulting in a lower free cash flow and a weakened margin. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the free cash flow margin was slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as the sequential increase in capex was the primary factor behind the decline in free cash flow margin.