Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than a year ago. Free cash flow margin improved from the prior quarter but declined from the same quarter last year.
- Operating cash flow increased substantially from the previous quarter, while capital expenditure was moderately higher. This resulted in improved free cash flow and free cash flow margin sequentially, despite a small decline in revenue.
- Compared to the prior quarter, free cash flow margin strengthened as operating cash flow rose sharply even with slightly lower revenue. However, compared to the same quarter one year earlier, free cash flow margin weakened because operating cash flow was lower while revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$715.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$538.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$685.0M
Cash generated by operations before capital spending.
CapEx
$147.0M
Capital spending and related asset purchases.
FCF margin
13.2%
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 | $3.7B | $346.0M | $208.0M | $138.0M | 3.7% |
| 2025-03-31 | $3.7B | -$18.0M | $209.0M | -$227.0M | -6.2% |
| 2025-06-30 | $4.2B | $387.0M | $121.0M | $266.0M | 6.3% |
| 2025-09-30 | $4.1B | $685.0M | $147.0M | $538.0M | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow
Operating cash flow rose sharply from the prior quarter, more than offsetting a small increase in capital expenditure and a slight decline in revenue. This drove higher free cash flow and free cash flow margin.
This improvement strengthened the company's cash generation in the current quarter compared to the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from the previous quarter, while capital expenditure was moderately higher. This resulted in improved free cash flow and free cash flow margin sequentially, despite a small decline in revenue.
Compared to the prior quarter, free cash flow margin strengthened as operating cash flow rose sharply even with slightly lower revenue. However, compared to the same quarter one year earlier, free cash flow margin weakened because operating cash flow was lower while revenue was slightly higher.
Monitor the trajectory of operating cash flow, as it declined from the year-ago level despite higher revenue, while the company's cash and short-term investments increased compared to the start of the fiscal year.