Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, with free cash flow margin rising, though both metrics declined compared to the same quarter last year. The sequential gain was driven by a significant increase in operating cash flow, while capital expenditure rose modestly.
- Revenue was higher than the prior quarter, and operating cash flow increased substantially, leading to a much higher free cash flow and margin. Capital expenditure also rose, but the improvement in cash generation outpaced the increase in spending.
- Compared to the prior quarter, free cash flow and margin improved significantly. However, compared to the same quarter a year ago, free cash flow and margin were lower, as operating cash flow declined despite a slight increase in revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$536.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$625.0M
Cash generated by operations before capital spending.
CapEx
$89.0M
Capital spending and related asset purchases.
FCF margin
25.2%
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 | $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% |
| 2025-12-31 | $2.1B | $625.0M | $89.0M | $536.0M | 25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 103.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.0B | 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 Recovery
Operating cash flow in the current quarter was substantially higher than the prior quarter, leading to a sharp improvement in free cash flow and margin. This recovery was the primary factor behind the sequential increase.
The higher free cash flow margin improved the company's cash conversion efficiency compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow increased substantially, leading to a much higher free cash flow and margin. Capital expenditure also rose, but the improvement in cash generation outpaced the increase in spending.
Compared to the prior quarter, free cash flow and margin improved significantly. However, compared to the same quarter a year ago, free cash flow and margin were lower, as operating cash flow declined despite a slight increase in revenue.
Monitor the company's credit rating and borrowing costs, as the filing notes that a downgrade could increase funding costs and reduce financial flexibility.