Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved from the prior quarter, with operating cash flow and free cash flow both higher. However, free cash flow margin weakened compared to the same quarter one year earlier.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but was lower than the year-ago quarter. Capital expenditure was slightly lower than both comparison periods. Free cash flow and free cash flow margin improved from the prior quarter but declined from the year-ago quarter.
- Compared to the prior quarter, cash generation strengthened significantly, with free cash flow moving from minimal to a positive level. Versus the same quarter one year earlier, free cash flow and margin were lower, indicating a weaker conversion rate.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$418.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$717.0M
Cash generated by operations before capital spending.
CapEx
$299.0M
Capital spending and related asset purchases.
FCF margin
4.3%
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 | $9.6B | $1.5B | $405.0M | $1.1B | 11.0% |
| 2025-03-31 | $9.3B | $1.1B | $277.0M | $815.0M | 8.8% |
| 2025-06-30 | $9.0B | $308.0M | $305.0M | $3.0M | 0.0% |
| 2025-09-30 | $9.7B | $717.0M | $299.0M | $418.0M | 4.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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.
Operating cash flow recovery
Operating cash flow increased from the prior quarter, driving the improvement in free cash flow. This was the strongest observable factor in the quarter's cash conversion.
Higher operating cash flow directly lifted free cash flow and margin 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 higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but was lower than the year-ago quarter. Capital expenditure was slightly lower than both comparison periods. Free cash flow and free cash flow margin improved from the prior quarter but declined from the year-ago quarter.
Compared to the prior quarter, cash generation strengthened significantly, with free cash flow moving from minimal to a positive level. Versus the same quarter one year earlier, free cash flow and margin were lower, indicating a weaker conversion rate.
Monitor whether operating cash flow can sustain its improvement relative to the prior quarter, given the year-ago level was substantially higher.