Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow. Revenue was stable versus the prior quarter and higher year over year.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than the year-ago level but slightly higher than the prior quarter. The resulting free cash flow margin strengthened sequentially and year over year.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow higher and capital expenditure slightly higher. Versus the same quarter one year earlier, free cash flow and margin were markedly higher, driven by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$737.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$444.0M
Capital spending and related asset purchases.
FCF margin
17.5%
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 | $4.0B | $1.0B | $498.0M | $524.0M | 13.0% |
| 2025-03-31 | $4.0B | $1.0B | $459.0M | $566.0M | 14.1% |
| 2025-06-30 | $4.2B | $1.1B | $407.0M | $702.0M | 16.6% |
| 2025-09-30 | $4.2B | $1.2B | $444.0M | $737.0M | 17.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.5% | 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 Growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing the primary support for the improvement in free cash flow and margin.
The increase in operating cash flow was the strongest observable driver of the quarter's free cash flow improvement.
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 both the prior quarter and the year-ago quarter, while capital expenditure was lower than the year-ago level but slightly higher than the prior quarter. The resulting free cash flow margin strengthened sequentially and year over year.
Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow higher and capital expenditure slightly higher. Versus the same quarter one year earlier, free cash flow and margin were markedly higher, driven by higher operating cash flow and lower capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as a higher capital outlay in the current quarter partially offset the improvement in free cash flow.