Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher operating cash flow and lower capital expenditure. However, free cash flow and margin weakened from the preceding quarter as revenue and operating cash flow declined.
- Revenue decreased from the prior quarter, while operating cash flow also fell, resulting in a lower free cash flow margin. Capital expenditure was higher than the preceding quarter but lower than the year-ago period, contributing to a mixed cash conversion pattern.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all improved, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$862.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$230.4M
Capital spending and related asset purchases.
FCF margin
15.4%
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 | $5.3B | -$61.1M | $189.3M | -$250.4M | -4.7% |
| 2025-06-30 | $6.3B | $1.1B | $181.5M | $931.1M | 14.7% |
| 2025-09-30 | $6.4B | $1.3B | $196.4M | $1.1B | 17.5% |
| 2025-12-31 | $5.6B | $1.1B | $230.4M | $862.1M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 180.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.5B | 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 versus year ago
Operating cash flow was higher than the same quarter last year, and capital expenditure was lower, leading to a notable improvement in free cash flow and free cash flow margin. This was the strongest observable driver of the quarter's performance.
The combination of higher operating cash flow and lower capital expenditure directly lifted free cash flow and margin compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from the prior quarter, while operating cash flow also fell, resulting in a lower free cash flow margin. Capital expenditure was higher than the preceding quarter but lower than the year-ago period, contributing to a mixed cash conversion pattern.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all improved, while capital expenditure was lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it shifted higher from the prior quarter while operating cash flow declined.