Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow weakened significantly versus both periods, resulting in a much lower free cash flow margin.
- Operating cash flow was substantially lower than revenue, and capital expenditure was higher than the prior quarter, driving free cash flow well below the level of operating cash flow and producing a single-digit free cash flow margin.
- Compared with the immediately preceding quarter, revenue was lower, operating cash flow dropped sharply, capital expenditure increased, and free cash flow margin weakened from a much higher level. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and the margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$152.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$221.0M
Cash generated by operations before capital spending.
CapEx
$69.0M
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $2.0B | $705.0M | $60.0M | $645.0M | 31.8% |
| 2025-03-31 | $2.1B | $663.0M | $49.0M | $614.0M | 29.3% |
| 2025-06-30 | $2.1B | $746.0M | $59.0M | $687.0M | 32.9% |
| 2025-09-30 | $2.0B | $221.0M | $69.0M | $152.0M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 35.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Decline
Operating cash flow fell substantially relative to both the prior quarter and the year-ago quarter, while capital expenditure increased. This combination drove free cash flow sharply lower and compressed the free cash flow margin.
The decline in operating cash flow is the single strongest observable factor behind the weakening of free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially lower than revenue, and capital expenditure was higher than the prior quarter, driving free cash flow well below the level of operating cash flow and producing a single-digit free cash flow margin.
Compared with the immediately preceding quarter, revenue was lower, operating cash flow dropped sharply, capital expenditure increased, and free cash flow margin weakened from a much higher level. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and the margin declined.
Monitor whether operating cash flow can recover from its current level, as it is the primary component of free cash flow.