Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher sequentially and year-over-year. Free cash flow margin weakened sequentially but was slightly improved versus the same quarter last year.
- Operating cash flow was higher than the prior year quarter but lower than the preceding quarter, leading to a lower free cash flow margin sequentially despite a higher revenue base. Capital expenditure was between the prior year and prior quarter levels.
- Compared to the prior quarter, operating cash flow declined and free cash flow was lower, weakening the cash conversion. Versus the same quarter last year, operating cash flow was stable, capital expenditure was higher, and free cash flow was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$685.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$890.3M
Cash generated by operations before capital spending.
CapEx
$205.2M
Capital spending and related asset purchases.
FCF margin
42.8%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.6B | $1.1B | $217.9M | $867.7M | 54.8% |
| 2025-03-31 | $1.5B | $827.2M | $230.2M | $597.0M | 40.5% |
| 2025-06-30 | $1.5B | $1.2B | $244.0M | $971.3M | 64.8% |
| 2025-09-30 | $1.6B | $890.3M | $205.2M | $685.0M | 42.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth paired with stable cash conversion
Revenue was higher both sequentially and year-over-year. While operating cash flow decreased from the prior quarter, it remained near the year-ago level, supporting a free cash flow margin that was similar to the prior year period.
Strong revenue generation provided a solid base for free cash flow, even as capital expenditure rose from the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior year quarter but lower than the preceding quarter, leading to a lower free cash flow margin sequentially despite a higher revenue base. Capital expenditure was between the prior year and prior quarter levels.
Compared to the prior quarter, operating cash flow declined and free cash flow was lower, weakening the cash conversion. Versus the same quarter last year, operating cash flow was stable, capital expenditure was higher, and free cash flow was slightly lower.
Monitor the trend in operating cash flow relative to revenue to assess whether cash conversion can sustain or improve its current level.