Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved significantly from the prior quarter and was higher than the year-ago quarter.
- Operating cash flow as a proportion of revenue was higher than the prior quarter and the year-ago quarter, while capital expenditure remained stable. This resulted in a free cash flow margin that was higher than both comparison periods.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Compared to the same quarter last year, all metrics were higher, with operating cash flow and free cash flow showing a larger relative increase than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$238.0M
Capital spending and related asset purchases.
FCF margin
56.1%
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 | $3.1B | $1.7B | $205.0M | $1.5B | 47.7% |
| 2025-06-30 | $3.2B | $716.0M | $190.0M | $526.0M | 16.4% |
| 2025-09-30 | $3.4B | $813.0M | $235.0M | $578.0M | 17.0% |
| 2025-12-31 | $3.6B | $2.2B | $238.0M | $2.0B | 56.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 498.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | 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.
Operating Cash Flow Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, driving a significant improvement in free cash flow and free cash flow margin. The filing notes that subscription services are generally paid in advance, which supports cash inflows.
The higher operating cash flow was the primary factor behind the improved free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter and the year-ago quarter, while capital expenditure remained stable. This resulted in a free cash flow margin that was higher than both comparison periods.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Compared to the same quarter last year, all metrics were higher, with operating cash flow and free cash flow showing a larger relative increase than revenue.
Monitor whether the elevated operating cash flow relative to revenue persists in subsequent quarters.