Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to both the prior quarter and the same quarter last year, driven by lower operating cash flow. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago period.
- Revenue was stable compared to the prior quarter but lower than a year ago. Operating cash flow declined from both periods, resulting in a lower free cash flow margin relative to the prior quarter and the year-ago quarter.
- Compared to the prior quarter, free cash flow and margin weakened as operating cash flow fell while revenue was stable. Versus the year-ago quarter, free cash flow and margin also weakened, with revenue lower and operating cash flow reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$954.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$189.9M
Capital spending and related asset purchases.
FCF margin
14.0%
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 | $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% |
| 2025-12-31 | $6.8B | $1.1B | $189.9M | $954.4M | 14.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 171.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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 Decline
Operating cash flow decreased from the prior quarter and the year-ago quarter, while revenue was relatively stable compared to the prior quarter. This was the primary observable factor behind the lower free cash flow.
The decline in operating cash flow reduced free cash flow and the free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter but lower than a year ago. Operating cash flow declined from both periods, resulting in a lower free cash flow margin relative to the prior quarter and the year-ago quarter.
Compared to the prior quarter, free cash flow and margin weakened as operating cash flow fell while revenue was stable. Versus the year-ago quarter, free cash flow and margin also weakened, with revenue lower and operating cash flow reduced.
Monitor the trend in operating cash flow, as it declined from both the prior quarter and the year-ago quarter, directly impacting free cash flow.