Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose while capital expenditure increased modestly. Compared to the same quarter last year, free cash flow was lower despite higher revenue, reflecting a weaker cash conversion rate.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased from the prior quarter, driving free cash flow and free cash flow margin higher sequentially. However, compared to the same quarter last year, operating cash flow and free cash flow were lower, and the free cash flow margin narrowed.
- Compared to the prior quarter, free cash flow and free cash flow margin improved as operating cash flow increased. Versus the same quarter last year, free cash flow and free cash flow margin weakened, with operating cash flow lower despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$490.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$614.2M
Cash generated by operations before capital spending.
CapEx
$123.9M
Capital spending and related asset purchases.
FCF margin
13.9%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $3.3B | $18.5M | $126.0M | -$107.5M | -3.2% |
| 2025-06-30 | $3.5B | $620.6M | $77.9M | $542.7M | 15.4% |
| 2025-09-30 | $3.6B | $387.2M | $106.7M | $280.5M | 7.9% |
| 2025-12-31 | $3.5B | $614.2M | $123.9M | $490.3M | 13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 297.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow recovery
Operating cash flow increased from the prior quarter, which was the strongest observable driver of the sequential improvement in free cash flow and free cash flow margin.
This lifted free cash flow and margin higher 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 lower than the prior quarter but higher than a year ago. Operating cash flow increased from the prior quarter, driving free cash flow and free cash flow margin higher sequentially. However, compared to the same quarter last year, operating cash flow and free cash flow were lower, and the free cash flow margin narrowed.
Compared to the prior quarter, free cash flow and free cash flow margin improved as operating cash flow increased. Versus the same quarter last year, free cash flow and free cash flow margin weakened, with operating cash flow lower despite higher revenue.
Monitor whether operating cash flow can sustain its sequential improvement given the year-over-year decline.