Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. Capital expenditure was higher than the prior quarter but lower than a year ago, supporting the cash conversion improvement.
- Revenue increased, and operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure rose from the prior quarter but remained below the year-ago level, contributing to the improved cash conversion.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin showing a notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$793.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$891.0M
Cash generated by operations before capital spending.
CapEx
$98.0M
Capital spending and related asset purchases.
FCF margin
23.8%
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 |
|---|---|---|---|---|---|
| 2025-03-30 | $2.8B | $565.0M | $139.0M | $426.0M | 15.0% |
| 2025-06-29 | $2.9B | $779.0M | $83.0M | $696.0M | 23.8% |
| 2025-09-28 | $3.2B | $585.0M | $77.0M | $508.0M | 16.0% |
| 2025-12-31 | $3.3B | $891.0M | $98.0M | $793.0M | 23.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 174.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.8B | 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 Growth
Operating cash flow increased substantially from both the prior quarter and the same quarter last year, outpacing revenue growth. This was the primary factor behind the higher free cash flow and margin.
The stronger operating cash flow provided a solid foundation for free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure rose from the prior quarter but remained below the year-ago level, contributing to the improved cash conversion.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin showing a notable improvement.
Monitor the trend in capital expenditure relative to operating cash flow, as it influences the sustainability of free cash flow generation.