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 the same quarter last year. Free cash flow margin weakened compared to both the prior quarter and the year-ago quarter.
- Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was higher than both periods. This resulted in free cash flow that was lower than both comparable quarters, with a free cash flow margin that declined.
- Compared to the prior quarter, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$404.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$981.0M
Cash generated by operations before capital spending.
CapEx
$577.0M
Capital spending and related asset purchases.
FCF margin
9.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $4.1B | $981.0M | $577.0M | $404.0M | 9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, contributing to a lower free cash flow despite revenue being higher than the year-ago quarter.
The higher capital expenditure was the strongest observable factor reducing free cash flow relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was higher than both periods. This resulted in free cash flow that was lower than both comparable quarters, with a free cash flow margin that declined.
Compared to the prior quarter, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both lower.
Monitor the trend in capital expenditure, which was higher than both the prior quarter and the year-ago quarter.