Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow improved significantly versus the prior quarter and were also higher than the year-ago quarter, leading to a stronger free cash flow margin.
- Operating cash flow as a proportion of revenue was higher than in both the preceding quarter and the same quarter one year earlier. Capital expenditure was lower than both comparison periods, which further supported the conversion of operating cash flow into free cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were also higher, with capital expenditure again lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$201.4M
Capital spending and related asset purchases.
FCF margin
37.8%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $3.8B | $1.3B | $199.6M | $1.1B | 28.1% |
| 2025-03-31 | $3.0B | $1.0B | $229.3M | $815.8M | 26.9% |
| 2025-06-30 | $3.7B | $1.1B | $219.0M | $925.4M | 25.2% |
| 2025-09-30 | $3.8B | $1.6B | $201.4M | $1.4B | 37.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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.
Higher Operating Cash Flow
Operating cash flow was higher than both the prior quarter and the same quarter last year, while revenue remained relatively stable. This improvement was the primary factor behind the increase in free cash flow and the expansion of the free cash flow margin.
The higher operating cash flow directly drove free cash flow higher and improved the free cash flow margin.
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 in both the preceding quarter and the same quarter one year earlier. Capital expenditure was lower than both comparison periods, which further supported the conversion of operating cash flow into free cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were also higher, with capital expenditure again lower.
Monitor the trend in capital expenditure, as it was lower in the current quarter compared to both the prior quarter and the year-ago quarter.