Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow and its margin declined as operating cash flow fell and capital expenditure rose.
- Operating cash flow as a proportion of revenue decreased, while capital expenditure increased, leading to a lower free cash flow margin.
- Compared with the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. The same pattern held versus the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$304.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$616.5M
Cash generated by operations before capital spending.
CapEx
$312.1M
Capital spending and related asset purchases.
FCF margin
6.5%
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 | $4.1B | $624.5M | $290.5M | $334.0M | 8.2% |
| 2025-03-31 | $4.1B | $755.1M | $287.0M | $468.2M | 11.3% |
| 2025-06-30 | $4.5B | $756.8M | $300.7M | $456.1M | 10.1% |
| 2025-09-30 | $4.7B | $616.5M | $312.1M | $304.4M | 6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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.
Cash flow generation
Operating cash flow decreased even as revenue grew, and capital expenditure increased, together compressing free cash flow.
Free cash flow margin contracted compared to both prior periods.
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 decreased, while capital expenditure increased, leading to a lower free cash flow margin.
Compared with the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. The same pattern held versus the same quarter one year earlier.
Monitor the trend of operating cash flow relative to revenue, as its decline despite higher revenue was the primary factor behind the weakened free cash flow margin.