Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved markedly from both the prior quarter and the year-ago period, supported by a rise in operating cash flow. Revenue was slightly lower than the previous quarter, but cash generation strengthened.
- Revenue decreased sequentially, yet operating cash flow increased and capital expenditure decreased, resulting in higher free cash flow and a wider margin. Year over year, operating cash flow and free cash flow were substantially higher, and the margin expanded.
- Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and margin all improved. Relative to the same quarter last year, all metrics were higher, with the largest gains in operating cash flow and free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$612.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$583.0M
Capital spending and related asset purchases.
FCF margin
8.1%
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 | $7.7B | $235.0M | $477.0M | -$242.0M | -3.2% |
| 2025-06-30 | $7.9B | $829.0M | $522.0M | $307.0M | 3.9% |
| 2025-09-30 | $8.0B | $1.1B | $610.0M | $523.0M | 6.5% |
| 2025-12-31 | $7.6B | $1.2B | $583.0M | $612.0M | 8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 630.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.3B | 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
Operating cash flow rose sequentially and significantly year over year, outpacing the change in revenue. The company's filing notes that net sales are influenced by volumes, prices, and costs, which may have contributed to this improvement.
Higher operating cash flow directly boosted free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased sequentially, yet operating cash flow increased and capital expenditure decreased, resulting in higher free cash flow and a wider margin. Year over year, operating cash flow and free cash flow were substantially higher, and the margin expanded.
Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and margin all improved. Relative to the same quarter last year, all metrics were higher, with the largest gains in operating cash flow and free cash flow.
Monitor capital expenditure, which increased slightly year over year but decreased from the prior quarter, as its trend affects future free cash flow.