Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the same quarter last year but weakened sequentially, as a higher operating cash flow relative to the year-ago period was more than offset by a larger capital expenditure compared to the prior quarter. The free cash flow margin strengthened year over year but declined from the preceding quarter.
- Revenue was stable compared to the year-ago quarter and slightly lower than the prior quarter. Operating cash flow was higher than a year earlier but lower than the previous quarter, while capital expenditure increased both sequentially and year over year, resulting in a free cash flow that improved from the same quarter last year but deteriorated from the prior quarter.
- Compared to the preceding quarter, revenue edged lower, operating cash flow declined, capital expenditure rose, and free cash flow decreased significantly, causing the free cash flow margin to drop. Versus the same quarter one year earlier, revenue was flat, operating cash flow and free cash flow were higher, capital expenditure was higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$334.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$729.0M
Capital spending and related asset purchases.
FCF margin
11.2%
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 | $3.0B | $950.0M | $449.0M | $501.0M | 16.7% |
| 2025-06-30 | $3.1B | $1.1B | $475.0M | $602.0M | 19.4% |
| 2025-09-30 | $3.1B | $1.3B | $551.0M | $720.0M | 23.2% |
| 2025-12-31 | $3.0B | $1.1B | $729.0M | $334.0M | 11.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.5% | 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.
Sequential rise in capital expenditure
Capital expenditure was higher than both the preceding quarter and the same quarter last year. The sequential increase was the most notable change, coinciding with a lower operating cash flow, which together drove free cash flow below the prior quarter's level.
The sequential rise in capital expenditure reduced free cash flow despite a year-over-year improvement in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the year-ago quarter and slightly lower than the prior quarter. Operating cash flow was higher than a year earlier but lower than the previous quarter, while capital expenditure increased both sequentially and year over year, resulting in a free cash flow that improved from the same quarter last year but deteriorated from the prior quarter.
Compared to the preceding quarter, revenue edged lower, operating cash flow declined, capital expenditure rose, and free cash flow decreased significantly, causing the free cash flow margin to drop. Versus the same quarter one year earlier, revenue was flat, operating cash flow and free cash flow were higher, capital expenditure was higher, and the free cash flow margin improved.
Monitor capital expenditure levels, as its sequential increase was the primary factor behind the weakening free cash flow from the prior quarter.