Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sequentially despite lower revenue, driven by higher operating cash flow and reduced capital expenditure. Compared to the same quarter last year, free cash flow rose while the margin remained broadly stable.
- Revenue declined from the prior quarter, but operating cash flow edged higher and capital expenditure fell, resulting in a substantial rise in free cash flow and an improved margin. Versus the year-ago quarter, revenue increased while operating cash flow was slightly lower, yet lower capital expenditure lifted free cash flow, keeping the margin essentially unchanged.
- Free cash flow and margin both improved compared to the immediately preceding quarter. Versus the same quarter one year earlier, free cash flow was higher while the margin was relatively stable.
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
$364.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$633.5M
Cash generated by operations before capital spending.
CapEx
$269.0M
Capital spending and related asset purchases.
FCF margin
8.3%
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 | $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% |
| 2025-12-31 | $4.4B | $633.5M | $269.0M | $364.5M | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | 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.
Capital Expenditure Reduction
Capital expenditure declined from the prior quarter, which, combined with a slight increase in operating cash flow, allowed free cash flow to rise even as revenue fell. This shift was the primary observable factor behind the margin improvement.
Continued moderation in capital spending could support higher free cash flow generation going forward.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, but operating cash flow edged higher and capital expenditure fell, resulting in a substantial rise in free cash flow and an improved margin. Versus the year-ago quarter, revenue increased while operating cash flow was slightly lower, yet lower capital expenditure lifted free cash flow, keeping the margin essentially unchanged.
Free cash flow and margin both improved compared to the immediately preceding quarter. Versus the same quarter one year earlier, free cash flow was higher while the margin was relatively stable.
Monitor whether the free cash flow margin can sustain its improved level relative to the prior quarter.