Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved versus the prior quarter, while free cash flow margin strengthened. Compared to the same quarter last year, operating cash flow and free cash flow were lower despite higher revenue.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year. Capital expenditure was lower than both comparison periods, which partially offset the decline in operating cash flow relative to the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$768.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$862.0M
Cash generated by operations before capital spending.
CapEx
$94.0M
Capital spending and related asset purchases.
FCF margin
14.8%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $5.0B | $630.0M | $88.0M | $542.0M | 10.9% |
| 2025-06-30 | $5.2B | $1.5B | $131.0M | $1.3B | 25.5% |
| 2025-09-30 | $5.1B | $782.0M | $89.0M | $693.0M | 13.6% |
| 2025-12-31 | $5.2B | $862.0M | $94.0M | $768.0M | 14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Sequential cash generation improvement
Revenue and operating cash flow both increased from the prior quarter, leading to a higher free cash flow margin. Capital expenditure remained stable in absolute terms.
The sequential improvement in free cash flow margin was the strongest observable driver this quarter.
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 was higher than the prior quarter but lower than the same quarter last year. Capital expenditure was lower than both comparison periods, which partially offset the decline in operating cash flow relative to the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trajectory of operating cash flow relative to revenue, as the year-over-year decline in conversion occurred despite higher revenue.