Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially driven by a stronger operating cash flow, but declined compared to the same quarter a year earlier as both revenue and operating cash flow were lower. The free cash flow margin widened from the prior quarter but narrowed from the year-ago period.
- Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow exceeded the prior quarter but fell short of the year-ago level. Capital expenditure increased from the prior quarter but decreased from the year-ago quarter, resulting in free cash flow that was higher sequentially but lower year-over-year.
- Compared with the immediately preceding quarter, free cash flow improved markedly, driven by a higher operating cash flow despite a modest increase in capital expenditure. Versus the same quarter one year earlier, free cash flow weakened as revenue and operating cash flow were both lower, and the free cash flow margin narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$384.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$450.0M
Capital spending and related asset purchases.
FCF margin
14.9%
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 | $7.7B | -$579.0M | $483.0M | -$1.1B | -13.8% |
| 2025-06-30 | $7.7B | $351.0M | $539.0M | -$188.0M | -2.5% |
| 2025-09-30 | $7.7B | $983.0M | $406.0M | $577.0M | 7.5% |
| 2025-12-31 | $7.1B | $1.5B | $450.0M | $1.1B | 14.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -755.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | 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.
Sequential operating cash flow improvement
Operating cash flow was higher than the prior quarter, providing the primary lift to free cash flow even as revenue declined. This improvement more than offset the sequential increase in capital expenditure.
The stronger operating cash flow drove a sequential improvement in free cash flow and margin, partially offsetting the year-over-year decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow exceeded the prior quarter but fell short of the year-ago level. Capital expenditure increased from the prior quarter but decreased from the year-ago quarter, resulting in free cash flow that was higher sequentially but lower year-over-year.
Compared with the immediately preceding quarter, free cash flow improved markedly, driven by a higher operating cash flow despite a modest increase in capital expenditure. Versus the same quarter one year earlier, free cash flow weakened as revenue and operating cash flow were both lower, and the free cash flow margin narrowed.
Monitor the trajectory of capital expenditure, which increased from the prior quarter but remained below the year-ago level, as it directly affects the conversion of operating cash flow into free cash flow.