Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased but operating cash flow decreased, leading to lower free cash flow compared to the prior quarter. Compared to the same quarter last year, free cash flow improved as capital expenditure declined.
- Revenue rose, yet operating cash flow fell and capital expenditure increased relative to the preceding quarter, resulting in a lower free cash flow margin.
- Sequentially, free cash flow and margin weakened. Year over year, free cash flow and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$358.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$655.0M
Cash generated by operations before capital spending.
CapEx
$296.5M
Capital spending and related asset purchases.
FCF margin
7.8%
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 | $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% |
| 2025-12-31 | $4.6B | $655.0M | $296.5M | $358.5M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was lower than the same quarter last year, which was the primary factor behind the year-over-year increase in free cash flow.
Continued discipline in capital spending could support free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, yet operating cash flow fell and capital expenditure increased relative to the preceding quarter, resulting in a lower free cash flow margin.
Sequentially, free cash flow and margin weakened. Year over year, free cash flow and margin improved.
Monitor the impact of foreign currency transaction losses on operating cash flow, as noted in the annual filing.