Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and free cash flow margin improved compared to both the prior quarter and the same quarter last year. Operating cash flow was higher, capital expenditure was higher, yet free cash flow still increased.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow was higher than both periods, while capital expenditure was also higher. The resulting free cash flow and free cash flow margin were higher than both comparisons.
- Compared to the prior quarter, revenue was lower, while operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Compared to the same quarter last year, all metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$586.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$887.0M
Cash generated by operations before capital spending.
CapEx
$301.0M
Capital spending and related asset purchases.
FCF margin
15.0%
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 | $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% |
| 2025-12-31 | $3.9B | $887.0M | $301.0M | $586.0M | 15.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 195.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | 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 growth
Operating cash flow was higher compared to both the prior quarter and the same quarter last year, contributing to higher free cash flow even with higher capital expenditure.
Free cash flow margin improved.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow was higher than both periods, while capital expenditure was also higher. The resulting free cash flow and free cash flow margin were higher than both comparisons.
Compared to the prior quarter, revenue was lower, while operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Compared to the same quarter last year, all metrics were higher.
Monitor the level of capital expenditure, which increased sequentially and year over year.