Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter but roughly stable compared with a year earlier, as a higher capital expenditure absorbed most of the operating cash flow. Revenue improved versus both comparison periods, yet the free cash flow margin weakened sequentially.
- Operating cash flow was higher than a year ago but lower than the prior quarter, while capital expenditure rose sharply from both periods, resulting in a free cash flow margin that was lower than the preceding quarter and slightly below the year-ago level.
- Compared with the prior quarter, revenue was higher but operating cash flow was lower, and capital expenditure increased, causing free cash flow and its margin to decline. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was slightly higher while the margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$728.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$127.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$446.6M
Cash generated by operations before capital spending.
CapEx
$319.0M
Capital spending and related asset purchases.
FCF margin
5.4%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $2.1B | $339.1M | $148.1M | $191.0M | 8.9% |
| 2025-06-30 | $2.2B | $299.6M | $169.7M | $129.9M | 6.0% |
| 2025-09-30 | $2.3B | $472.2M | $192.1M | $280.1M | 12.1% |
| 2025-12-31 | $2.4B | $446.6M | $319.0M | $127.6M | 5.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.5B | 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 Increase
Capital expenditure rose substantially from both the prior quarter and the year-ago quarter, outpacing the growth in operating cash flow and compressing free cash flow.
Higher capital expenditure was the strongest observable factor reducing free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than a year ago but lower than the prior quarter, while capital expenditure rose sharply from both periods, resulting in a free cash flow margin that was lower than the preceding quarter and slightly below the year-ago level.
Compared with the prior quarter, revenue was higher but operating cash flow was lower, and capital expenditure increased, causing free cash flow and its margin to decline. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was slightly higher while the margin was slightly lower.
Monitor the level of capital expenditure relative to operating cash flow, as the current quarter's higher spending reduced free cash flow conversion.