Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the third quarter, free cash flow improved sequentially as operating cash flow increased while capital expenditure remained relatively stable. Compared to the same quarter last year, free cash flow was higher, though the free cash flow margin was slightly lower.
- Operating cash flow converted into free cash flow after capital expenditure at a margin that improved from the prior quarter but was marginally below the year-ago level. Revenue was lower sequentially but higher year-over-year.
- Sequentially, operating cash flow strengthened while revenue decreased, leading to a significant improvement in free cash flow. Versus the same quarter last year, operating cash flow was lower despite higher revenue, but free cash flow increased due to lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$757.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$361.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$551.0M
Cash generated by operations before capital spending.
CapEx
$190.0M
Capital spending and related asset purchases.
FCF margin
24.8%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.4B | $686.0M | $483.0M | $203.0M | 14.4% |
| 2025-03-31 | $1.2B | $218.0M | $233.0M | -$15.0M | -1.3% |
| 2025-06-30 | $2.0B | $387.0M | $179.0M | $208.0M | 10.4% |
| 2025-09-30 | $1.5B | $551.0M | $190.0M | $361.0M | 24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Free Cash Flow Improvement
Free cash flow benefited from a rise in operating cash flow coupled with a modest increase in capital spending.
This improvement enhanced the company's cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow after capital expenditure at a margin that improved from the prior quarter but was marginally below the year-ago level. Revenue was lower sequentially but higher year-over-year.
Sequentially, operating cash flow strengthened while revenue decreased, leading to a significant improvement in free cash flow. Versus the same quarter last year, operating cash flow was lower despite higher revenue, but free cash flow increased due to lower capital expenditure.
Monitor operating cash flow trends in the upcoming quarter, especially after the settlement of deferred tax obligations related to disaster relief.