Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved from the prior quarter but weakened compared to the same quarter last year. The free cash flow margin strengthened sequentially due to higher operating cash flow on stable revenue.
- Revenue was stable compared to the prior quarter, while operating cash flow increased, resulting in higher free cash flow and an improved margin. Capital expenditure was slightly higher than the prior quarter.
- Compared to the immediately preceding quarter, free cash flow and margin improved. Compared to the same quarter one year earlier, free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$950.0M
Capital spending and related asset purchases.
FCF margin
25.2%
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 | $6.1B | $2.7B | $922.0M | $1.7B | 28.4% |
| 2025-03-31 | $6.0B | $2.2B | $906.0M | $1.3B | 21.6% |
| 2025-06-30 | $6.2B | $2.3B | $936.0M | $1.4B | 22.7% |
| 2025-09-30 | $6.2B | $2.5B | $950.0M | $1.6B | 25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 increase
Operating cash flow increased from the prior quarter while revenue remained stable, leading to a higher free cash flow margin.
This improvement was the key factor behind the sequential strengthening of free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, while operating cash flow increased, resulting in higher free cash flow and an improved margin. Capital expenditure was slightly higher than the prior quarter.
Compared to the immediately preceding quarter, free cash flow and margin improved. Compared to the same quarter one year earlier, free cash flow and margin were lower.
Monitor capital expenditure trends, which increased from both the prior quarter and the same quarter last year, as the filing notes the increase was driven by timing of capital investments and early lease buyouts.