Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow improved markedly compared to both the prior quarter and the same period a year ago. The increase was driven by higher revenue and operating cash flow alongside lower capital expenditure.
- Revenue and operating cash flow both increased, while capital expenditure decreased. This supported a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were higher. Compared to the same quarter a year ago, both metrics also showed improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$993.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
20.9%
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 | $4.0B | $2.0B | $1.2B | $806.0M | 20.1% |
| 2025-03-31 | $4.1B | $849.0M | $1.1B | -$274.0M | -6.7% |
| 2025-06-30 | $4.4B | $1.9B | $1.3B | $555.0M | 12.5% |
| 2025-09-30 | $4.7B | $2.2B | $1.2B | $993.0M | 20.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 25.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and Operating Cash Flow Growth
Revenue increased from the prior quarter and from the year-ago period, while operating cash flow also rose. Lower capital expenditure provided additional support.
This combination drove the improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased, while capital expenditure decreased. This supported a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow and margin were higher. Compared to the same quarter a year ago, both metrics also showed improvement.
Monitor the trend in working capital, as the filing noted higher cash used for working capital in the first nine months.