Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue grew from both the prior quarter and the same quarter last year. Free cash flow margin weakened compared to both periods, as operating cash flow did not keep pace with revenue growth while capital expenditure increased.
- Operating cash flow was lower than the prior quarter but comparable to the year-ago quarter. Combined with higher capital expenditure, free cash flow decreased from the prior quarter while remaining slightly above the year-ago level. The free cash flow margin declined from both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue and free cash flow were higher, while free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$98.0M
Capital spending and related asset purchases.
FCF margin
16.6%
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 | $12.0B | $1.8B | $44.0M | $1.7B | 14.3% |
| 2025-03-31 | $11.5B | $2.3B | $74.0M | $2.3B | 19.5% |
| 2025-06-30 | $12.7B | $2.6B | $89.0M | $2.5B | 19.6% |
| 2025-09-30 | $13.5B | $2.3B | $98.0M | $2.2B | 16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 33.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue improved sequentially and year-over-year, providing a larger base for cash generation. The filing notes an increase in cash from working capital during the nine-month period, driven by accrued insurance reserves and accrued expenses, partially offset by accounts receivable and prepaid assets.
Higher revenue supported absolute free cash flow growth versus the prior year, but the cash conversion rate weakened due to slower operating cash flow growth and increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but comparable to the year-ago quarter. Combined with higher capital expenditure, free cash flow decreased from the prior quarter while remaining slightly above the year-ago level. The free cash flow margin declined from both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue and free cash flow were higher, while free cash flow margin was lower.
Monitor the trend in accounts receivable and prepaid expenses, which were cited in the filing as an offset to working capital cash generation.