Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but was higher than the same quarter last year. Free cash flow margin improved significantly compared to both the prior quarter and the year-ago quarter.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than both periods. This combination drove free cash flow higher and expanded the free cash flow margin.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow and margin both improved. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$925.0M
Capital spending and related asset purchases.
FCF margin
30.0%
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 | $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% |
| 2025-12-31 | $4.4B | $2.3B | $925.0M | $1.3B | 30.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Expansion
Free cash flow margin rose to a higher level compared to both the prior quarter and the year-ago quarter, supported by higher operating cash flow and lower capital expenditure relative to revenue.
The margin improvement strengthened cash generation efficiency in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than both periods. This combination drove free cash flow higher and expanded the free cash flow margin.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow and margin both improved. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all higher, while capital expenditure was lower.
Monitor the trajectory of capital expenditure, which decreased from both the prior quarter and the year-ago quarter.