Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than both the prior quarter and the same quarter last year, despite revenue being higher than a year ago. The free cash flow margin weakened compared to both periods, reflecting a shift in the relationship between operating cash flow and revenue.
- Operating cash flow exceeded revenue, resulting in a free cash flow margin above one hundred percent, though this margin was lower than in the prior quarter and the year-ago quarter. Capital expenditure was higher than both comparison periods, which contributed to the reduction in free cash flow.
- Compared to the prior quarter, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower. Compared to the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$764.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$920.0M
Cash generated by operations before capital spending.
CapEx
$156.0M
Capital spending and related asset purchases.
FCF margin
104.4%
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 | $789.0M | $941.0M | $174.0M | $767.0M | 97.2% |
| 2025-03-31 | $846.0M | $736.0M | $98.0M | $638.0M | 75.4% |
| 2025-06-30 | $769.0M | $1.0B | $134.0M | $872.0M | 113.4% |
| 2025-09-30 | $732.0M | $920.0M | $156.0M | $764.0M | 104.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.3% | 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 in the current quarter than in both the immediately preceding quarter and the same quarter one year earlier. This increase was the strongest observable factor in the reduction of free cash flow.
Higher capital expenditure directly reduced free cash flow relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue, resulting in a free cash flow margin above one hundred percent, though this margin was lower than in the prior quarter and the year-ago quarter. Capital expenditure was higher than both comparison periods, which contributed to the reduction in free cash flow.
Compared to the prior quarter, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower. Compared to the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
Monitor the trend in capital expenditure, as it was higher in the current quarter compared to both the prior quarter and the year-ago quarter.