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. Free cash flow and free cash flow margin weakened sequentially but improved relative to the year-ago period.
- Operating cash flow was lower than the prior quarter but higher than a year ago, while capital expenditure increased versus both periods. The resulting free cash flow margin declined sequentially but rose year-over-year, indicating a mixed cash conversion pattern.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a decrease in operating cash flow and a rise in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow despite higher capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$922.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$248.7M
Capital spending and related asset purchases.
FCF margin
23.7%
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 | $3.0B | $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% |
| 2025-12-31 | $3.9B | $1.2B | $248.7M | $922.0M | 23.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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.
Operating Cash Flow Strength
Operating cash flow was higher than the same quarter last year, providing the primary support for the year-over-year improvement in free cash flow and margin.
This driver underpinned the year-over-year increase in free cash flow despite higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than a year ago, while capital expenditure increased versus both periods. The resulting free cash flow margin declined sequentially but rose year-over-year, indicating a mixed cash conversion pattern.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a decrease in operating cash flow and a rise in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow despite higher capital spending.
Monitor the trajectory of capital expenditure, which increased from both the prior quarter and the year-ago quarter.