Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved as free cash flow margin rose, driven by higher operating cash flow and lower capital expenditure relative to revenue. Compared with both the prior quarter and the same quarter last year, free cash flow increased while revenue was mixed.
- Revenue was lower than the preceding quarter but higher than a year ago, while operating cash flow was higher than both periods. Capital expenditure increased slightly from the prior quarter but decreased from the prior year, resulting in free cash flow that was higher than both comparisons and a free cash flow margin that improved from both prior periods.
- Sequentially, revenue was lower but operating cash flow, free cash flow, and margin were all higher. Year-over-year, revenue, operating cash flow, free cash flow, and margin were all higher, with capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$405.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$681.4M
Cash generated by operations before capital spending.
CapEx
$276.0M
Capital spending and related asset purchases.
FCF margin
9.5%
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 | $4.3B | $671.6M | $404.0M | $267.5M | 6.2% |
| 2025-03-31 | $4.3B | $547.1M | $228.0M | $319.0M | 7.5% |
| 2025-06-30 | $4.4B | $645.9M | $268.4M | $377.4M | 8.6% |
| 2025-09-30 | $4.3B | $681.4M | $276.0M | $405.4M | 9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -142.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow Generation
Operating cash flow increased relative to revenue, and capital expenditure was lower than the prior year, leading to higher free cash flow and an expanded margin.
This strengthened cash conversion efficiency and improved the quarter's free cash flow profile.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter but higher than a year ago, while operating cash flow was higher than both periods. Capital expenditure increased slightly from the prior quarter but decreased from the prior year, resulting in free cash flow that was higher than both comparisons and a free cash flow margin that improved from both prior periods.
Sequentially, revenue was lower but operating cash flow, free cash flow, and margin were all higher. Year-over-year, revenue, operating cash flow, free cash flow, and margin were all higher, with capital expenditure lower.
Monitor the volatility in other income and expense, particularly from derivatives and foreign currency, as disclosed in the filing.