Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the preceding quarter and the year-ago quarter. Free cash flow also increased, but its margin improved from the prior quarter while weakening from the year-ago period.
- Operating cash flow as a share of revenue was higher than in the prior quarter but lower than a year ago. Capital expenditure rose, yet free cash flow increased due to the growth in operating cash flow, resulting in a free cash flow margin that was higher sequentially but lower year-over-year.
- Compared to the immediately preceding quarter, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, free cash flow was higher, but the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$948.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$254.9M
Capital spending and related asset purchases.
FCF margin
53.0%
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 | $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% |
| 2025-12-31 | $1.8B | $1.2B | $254.9M | $948.8M | 53.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.6B | 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 rose compared to both the prior quarter and the year-ago quarter, providing the primary support for the increase in free cash flow.
The increase in operating cash flow enabled a higher free cash flow despite a larger capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than in the prior quarter but lower than a year ago. Capital expenditure rose, yet free cash flow increased due to the growth in operating cash flow, resulting in a free cash flow margin that was higher sequentially but lower year-over-year.
Compared to the immediately preceding quarter, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, free cash flow was higher, but the free cash flow margin was lower.
Monitor the free cash flow margin trend, as it declined from the year-ago level despite an increase in absolute free cash flow.