Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but declined from the prior year's same quarter. Operting cash flow drove the sequential gain while free cash flow margin weakened year-over-year.
- Revenue was stable sequentially, yet operating cash flow increased, lifting free cash flow and its margin. Free cash flow margin was lower than the year-ago period as operating cash flow was lower relative to revenue.
- Compared to the immediately preceding quarter, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Relative to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$849.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$293.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$574.7M
Cash generated by operations before capital spending.
CapEx
$281.2M
Capital spending and related asset purchases.
FCF margin
6.5%
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 | $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% |
| 2025-12-31 | $4.5B | $574.7M | $281.2M | $293.5M | 6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.7B | 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 recovery
Operating cash flow was the strongest observable driver, increasing from the prior quarter and lifting free cash flow. This occurred while revenue remained nearly unchanged sequentially.
The sequential rise in operating cash flow directly contributed to the improvement in free cash flow and its margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, yet operating cash flow increased, lifting free cash flow and its margin. Free cash flow margin was lower than the year-ago period as operating cash flow was lower relative to revenue.
Compared to the immediately preceding quarter, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Relative to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor operating cash flow's trajectory given it declined from the year-ago quarter despite higher revenue.