Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter and the year-ago quarter. Free cash flow improved year over year but weakened sequentially, with a narrower free cash flow margin versus the preceding quarter.
- Operating cash flow was higher than a year ago, but capital expenditure was slightly lower, resulting in improved free cash flow. The free cash flow margin strengthened year over year, though it declined from the immediately preceding quarter.
- Compared with the prior quarter, operating cash flow was lower and capital expenditure was lower, resulting in a lower free cash flow and a weakened margin. Compared with the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$968.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$151.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$380.7M
Cash generated by operations before capital spending.
CapEx
$228.9M
Capital spending and related asset purchases.
FCF margin
3.4%
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 | $4.1B | $658.4M | $245.9M | $412.5M | 10.0% |
| 2025-03-31 | $4.1B | $360.0M | $239.0M | $121.0M | 3.0% |
| 2025-06-30 | $4.3B | $549.0M | $266.0M | $283.0M | 6.6% |
| 2025-09-30 | $4.5B | $380.7M | $228.9M | $151.8M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 40.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | 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 increased from both the prior quarter and the year-ago quarter. This higher revenue provided a larger base for operating cash flow generation, contributing to the year-over-year improvement in free cash flow.
The overall free cash flow level was higher than the same quarter last year, supported by revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than a year ago, but capital expenditure was slightly lower, resulting in improved free cash flow. The free cash flow margin strengthened year over year, though it declined from the immediately preceding quarter.
Compared with the prior quarter, operating cash flow was lower and capital expenditure was lower, resulting in a lower free cash flow and a weakened margin. Compared with the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the margin improved.
Monitor free cash flow margin progression given its sequential decline despite higher revenue.