Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year, yet free cash flow improved significantly due to a higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened compared to both periods.
- Operating cash flow as a share of revenue rose sharply versus the prior quarter and the year-ago quarter, while capital expenditure decreased, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, with capital expenditure lower. Versus the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$165.9M
Capital spending and related asset purchases.
FCF margin
20.4%
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 | $7.9B | $1.4B | $233.4M | $1.2B | 15.3% |
| 2025-03-31 | $7.4B | $910.3M | $165.1M | $745.2M | 10.0% |
| 2025-06-30 | $7.5B | $833.4M | $222.1M | $611.3M | 8.1% |
| 2025-09-30 | $6.7B | $1.5B | $165.9M | $1.4B | 20.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 230.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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.
Operating Cash Flow Strength
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, despite lower revenue. This was the primary factor behind the improvement in free cash flow and margin.
Higher operating cash flow drove free cash flow higher and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue rose sharply versus the prior quarter and the year-ago quarter, while capital expenditure decreased, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, with capital expenditure lower. Versus the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.