Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially as operating cash flow rose while capital expenditure increased modestly, resulting in higher free cash flow and margin. Compared to the same quarter last year, all cash metrics were lower, with free cash flow margin narrowing.
- Revenue was higher than the prior quarter, and operating cash flow grew at a faster pace, leading to a stronger free cash flow margin. Capital expenditure increased but remained a smaller share of operating cash flow, supporting improved cash conversion.
- Compared to the immediately preceding quarter, free cash flow and margin improved, driven by higher operating cash flow. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and margin were all lower.
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
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$409.0M
Capital spending and related asset purchases.
FCF margin
14.3%
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 | $9.3B | $2.4B | $609.0M | $1.8B | 19.2% |
| 2025-03-31 | $8.5B | $660.0M | $398.0M | $262.0M | 3.1% |
| 2025-06-30 | $8.5B | $1.1B | $371.0M | $771.0M | 9.0% |
| 2025-09-30 | $8.9B | $1.7B | $409.0M | $1.3B | 14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 172.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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 increased from the prior quarter, outpacing revenue growth and enabling a higher free cash flow margin. This was the strongest observable driver of the quarter's cash conversion improvement.
Higher operating cash flow directly lifted free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow grew at a faster pace, leading to a stronger free cash flow margin. Capital expenditure increased but remained a smaller share of operating cash flow, supporting improved cash conversion.
Compared to the immediately preceding quarter, free cash flow and margin improved, driven by higher operating cash flow. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and margin were all lower.
Monitor the trajectory of operating cash flow relative to revenue, as it declined year-over-year despite a smaller revenue decrease.