Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially and higher year over year. Free cash flow and margin declined sequentially and were lower than the prior year, with capital expenditure rising substantially.
- Operating cash flow improved sequentially but was lower year over year. A larger share of operating cash flow was used for capital spending, resulting in a lower free cash flow margin compared to both the prior quarter and the same quarter last year.
- Sequentially, revenue was stable while operating cash flow improved; however, capital expenditure increased significantly, leading to lower free cash flow and margin. Year over year, revenue was higher but operating cash flow was lower, and free cash flow and margin also weakened despite a slight reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$731.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$177.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$629.0M
Cash generated by operations before capital spending.
CapEx
$452.0M
Capital spending and related asset purchases.
FCF margin
11.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $1.5B | $629.0M | $452.0M | $177.0M | 11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | 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 Increase
Capital expenditure rose substantially in the current quarter compared to the previous quarter, consuming a larger portion of operating cash flow.
This shift reduced free cash flow and margin, despite stable revenue and improved operating cash flow sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved sequentially but was lower year over year. A larger share of operating cash flow was used for capital spending, resulting in a lower free cash flow margin compared to both the prior quarter and the same quarter last year.
Sequentially, revenue was stable while operating cash flow improved; however, capital expenditure increased significantly, leading to lower free cash flow and margin. Year over year, revenue was higher but operating cash flow was lower, and free cash flow and margin also weakened despite a slight reduction in capital expenditure.
Monitor the level of capital expenditure and its effect on free cash flow generation in upcoming quarters.