Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the same quarter one year earlier, despite higher revenue, because operating cash flow did not keep pace and capital expenditure increased. Compared with the immediately preceding quarter, free cash flow improved as operating cash flow rose more than capital expenditure.
- Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow improved from the prior quarter but was lower than a year ago. Capital expenditure increased from both comparison periods, resulting in free cash flow that was higher than the prior quarter but lower than the same quarter last year. The free cash flow margin weakened compared with a year earlier but improved from the prior quarter.
- Compared with the immediately preceding quarter, free cash flow was higher, driven by a larger increase in operating cash flow relative to capital expenditure. Versus the same quarter one year earlier, free cash flow was lower, as operating cash flow declined and capital expenditure rose.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$454.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$676.8M
Cash generated by operations before capital spending.
CapEx
$222.0M
Capital spending and related asset purchases.
FCF margin
19.8%
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 | $1.9B | $440.1M | $162.5M | $277.6M | 15.0% |
| 2025-03-31 | $1.6B | $251.5M | $168.0M | $83.5M | 5.1% |
| 2025-06-30 | $2.1B | $341.7M | $102.9M | $238.8M | 11.4% |
| 2025-09-30 | $2.3B | $676.8M | $222.0M | $454.8M | 19.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the same quarter last year, which reduced free cash flow relative to what it would have been if capital expenditure had remained at prior levels.
The higher capital expenditure was the strongest observable factor weighing on free cash flow compared with the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow improved from the prior quarter but was lower than a year ago. Capital expenditure increased from both comparison periods, resulting in free cash flow that was higher than the prior quarter but lower than the same quarter last year. The free cash flow margin weakened compared with a year earlier but improved from the prior quarter.
Compared with the immediately preceding quarter, free cash flow was higher, driven by a larger increase in operating cash flow relative to capital expenditure. Versus the same quarter one year earlier, free cash flow was lower, as operating cash flow declined and capital expenditure rose.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the same quarter last year.