Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Revenue was higher than both comparison periods.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was higher than the prior quarter but lower than the year-ago quarter, while capital expenditure was lower than both periods. The combination of higher operating cash flow and lower capital expenditure resulted in free cash flow and free cash flow margin that were higher than both comparison periods.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower; free cash flow margin improved. Compared with the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow and its margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$311.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$556.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$722.6M
Cash generated by operations before capital spending.
CapEx
$165.7M
Capital spending and related asset purchases.
FCF margin
11.5%
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 | $3.9B | $346.9M | $453.2M | -$106.3M | -2.7% |
| 2025-03-31 | $4.4B | $152.6M | $305.5M | -$152.9M | -3.5% |
| 2025-06-30 | $4.6B | $301.6M | $288.3M | $13.3M | 0.3% |
| 2025-09-30 | $4.8B | $722.6M | $165.7M | $556.9M | 11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 and lower capital spending
Operating cash flow was higher than the prior quarter, and capital expenditure was lower than both the prior quarter and the same quarter last year. This combination drove free cash flow and margin to higher levels.
Free cash flow and margin improved substantially compared with both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was higher than the prior quarter but lower than the year-ago quarter, while capital expenditure was lower than both periods. The combination of higher operating cash flow and lower capital expenditure resulted in free cash flow and free cash flow margin that were higher than both comparison periods.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower; free cash flow margin improved. Compared with the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow and its margin were higher.
Monitor capital expenditure levels given the company's description of its business as capital intensive and its reliance on cash from operations and borrowings to fund expansion projects.