Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but was higher than a year ago. Operating cash flow and free cash flow both decreased relative to both comparison periods, and the free cash flow margin weakened.
- Operating cash flow as a percentage of revenue decreased, and while capital expenditure was lower than a year ago, it was higher than the prior quarter. The net effect was a weaker free cash flow conversion compared to both periods.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and free cash flow margin also weakened.
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
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$248.0M
Capital spending and related asset purchases.
FCF margin
21.8%
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 | $6.0B | -$79.0M | $236.0M | -$315.0M | -5.3% |
| 2025-06-30 | $6.3B | -$954.0M | $208.0M | -$1.2B | -18.3% |
| 2025-09-30 | $6.5B | $1.8B | $218.0M | $1.5B | 23.6% |
| 2025-12-31 | $6.1B | $1.6B | $248.0M | $1.3B | 21.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 231.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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.
Lower operating cash flow
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter, while capital expenditure moved in opposite directions. The reduction in operating cash flow was the key factor behind the decline in free cash flow.
The weakened free cash flow margin reflects a reduced ability to convert revenue into cash compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue decreased, and while capital expenditure was lower than a year ago, it was higher than the prior quarter. The net effect was a weaker free cash flow conversion compared to both periods.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and free cash flow margin also weakened.
Monitor the trend in operating cash flow given its decline relative to both the prior quarter and the year-ago quarter.