Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose while capital expenditure declined, resulting in a higher free cash flow margin. Compared to the same quarter last year, free cash flow and margin were lower despite a slight increase in revenue.
- Revenue was stable sequentially, but operating cash flow increased, and capital expenditure decreased, leading to higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter a year ago, free cash flow and margin were lower, as operating cash flow declined while revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$935.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$68.4M
Capital spending and related asset purchases.
FCF margin
16.3%
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 | $4.9B | $899.9M | $125.6M | $774.3M | 15.9% |
| 2025-03-31 | $4.7B | $339.5M | $118.9M | $220.6M | 4.7% |
| 2025-06-30 | $5.7B | $692.1M | $89.9M | $602.2M | 10.5% |
| 2025-09-30 | $5.7B | $1.0B | $68.4M | $935.6M | 16.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Improvement
Operating cash flow increased sequentially, which was the primary factor behind the higher free cash flow and margin this quarter.
This improvement directly supported a stronger cash conversion from revenue into free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, but operating cash flow increased, and capital expenditure decreased, leading to higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter a year ago, free cash flow and margin were lower, as operating cash flow declined while revenue was slightly higher.
Monitor operating cash flow trends, as the current quarter's level was lower than the same quarter last year despite stable revenue.