Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both declined from the prior quarter and the year-ago quarter, while capital expenditure increased relative to both periods. Free cash flow and free cash flow margin weakened sequentially but improved slightly compared to the same quarter last year.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the year-ago quarter. After deducting higher capital expenditure, free cash flow margin narrowed sequentially but widened modestly versus the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. Versus the year-ago quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow and free cash flow margin were slightly improved.
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
$357.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$540.7M
Cash generated by operations before capital spending.
CapEx
$182.9M
Capital spending and related asset purchases.
FCF margin
11.4%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
TTM FCF divided by market capitalization.
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 | $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% |
| 2025-12-31 | $3.1B | $540.7M | $182.9M | $357.8M | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose compared to both the immediately preceding quarter and the same quarter one year earlier. This increase absorbed a larger share of operating cash flow, contributing to the sequential decline in free cash flow.
Higher capital expenditure reduced free cash flow relative to operating cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the year-ago quarter. After deducting higher capital expenditure, free cash flow margin narrowed sequentially but widened modestly versus the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. Versus the year-ago quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow and free cash flow margin were slightly improved.
Monitor the trend in capital expenditure, which was higher in the current quarter compared to both the prior quarter and the year-ago quarter.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $0 | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 5.0x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.