Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter one year earlier. However, free cash flow and free cash flow margin decreased relative to both periods. The company's filing notes a strong financial position and liquidity flexibility.
- The company converted a higher revenue into a lower operating cash flow, leading to a weakened free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure also decreased. Compared to the same quarter one year earlier, operating cash flow was slightly 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
$5.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$457.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$925.0M
Cash generated by operations before capital spending.
CapEx
$468.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 |
|---|---|---|---|---|---|
| 2025-01-24 | $8.3B | $2.6B | $476.0M | $2.1B | 25.3% |
| 2025-04-25 | $8.9B | $2.5B | $459.0M | $2.1B | 23.2% |
| 2025-07-25 | $8.6B | $1.1B | $504.0M | $584.0M | 6.8% |
| 2025-10-24 | $9.0B | $925.0M | $468.0M | $457.0M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 33.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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 relative to revenue
Revenue grew but operating cash flow decreased, indicating that cash generation did not match sales growth.
This weakened free cash flow margin and overall cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher revenue into a lower operating cash flow, leading to a weakened free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure also decreased. Compared to the same quarter one year earlier, operating cash flow was slightly lower, capital expenditure was higher, and free cash flow was lower.
Monitor the trend of free cash flow margin, as it declined from both comparison periods.