Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow relative to revenue. Capital expenditure remained stable across all periods.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased sequentially and year-over-year, while capital expenditure was slightly lower than the prior quarter and slightly higher than a year ago. The resulting free cash flow rose both sequentially and year-over-year, and the free cash flow margin strengthened compared to both periods.
- Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin. Versus the same quarter last year, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$777.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$858.0M
Cash generated by operations before capital spending.
CapEx
$81.0M
Capital spending and related asset purchases.
FCF margin
41.1%
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 | $1.9B | $757.0M | $85.0M | $672.0M | 34.9% |
| 2025-06-30 | $1.9B | $543.0M | $75.0M | $468.0M | 24.7% |
| 2025-09-30 | $2.0B | $743.0M | $85.0M | $658.0M | 32.8% |
| 2025-12-31 | $1.9B | $858.0M | $81.0M | $777.0M | 41.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | 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 Growth
Operating cash flow increased both sequentially and year-over-year, outpacing the change in revenue. This was the strongest observable driver of the improvement in free cash flow and margin.
Higher operating cash flow directly lifted free cash flow and margin without a proportional increase in capital expenditure.
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 sequentially and year-over-year, while capital expenditure was slightly lower than the prior quarter and slightly higher than a year ago. The resulting free cash flow rose both sequentially and year-over-year, and the free cash flow margin strengthened compared to both periods.
Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin. Versus the same quarter last year, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
Monitor whether operating cash flow can sustain its sequential growth given that revenue declined in the current quarter.