Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved in the current quarter compared to the same quarter last year, driven by higher operating cash flow and a lower capital expenditure. Compared to the immediately preceding quarter, however, free cash flow declined as revenue and operating cash flow were both lower.
- Revenue was lower than the prior quarter while operating cash flow decreased at a similar pace, resulting in a slightly lower free cash flow margin. The margin remained above the level seen one year earlier, supported by stronger operating cash flow conversion relative to revenue.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and the free cash flow margin all were lower. Versus the same quarter one year earlier, operating cash flow, free cash flow, and the free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$483.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$616.1M
Cash generated by operations before capital spending.
CapEx
$133.1M
Capital spending and related asset purchases.
FCF margin
13.9%
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 | $3.2B | $494.5M | $111.1M | $383.4M | 11.8% |
| 2025-03-31 | $2.7B | -$90.7M | $237.3M | -$328.0M | -12.2% |
| 2025-06-30 | $3.7B | $718.3M | $163.3M | $555.0M | 14.8% |
| 2025-09-30 | $3.5B | $616.1M | $133.1M | $483.0M | 13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -16.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Year-over-Year Cash Generation
Operating cash flow increased significantly compared to the same quarter last year, while capital expenditure was lower, leading to a higher free cash flow and an improved free cash flow margin.
The stronger year-over-year cash conversion provided a larger cushion for capital allocation without relying on external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter while operating cash flow decreased at a similar pace, resulting in a slightly lower free cash flow margin. The margin remained above the level seen one year earlier, supported by stronger operating cash flow conversion relative to revenue.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and the free cash flow margin all were lower. Versus the same quarter one year earlier, operating cash flow, free cash flow, and the free cash flow margin were higher.
Monitor the trajectory of operating cash flow, as it declined from the prior quarter despite a narrower decline in revenue.