Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to the same quarter last year, driven by higher operating cash flow relative to revenue. However, the margin weakened from the prior quarter as revenue and operating cash flow both declined.
- Revenue was stable versus the year-ago quarter, while operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure was higher than a year ago but lower than the prior quarter, supporting the conversion of operating cash flow into free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter a year ago, revenue was stable, operating cash flow and free cash flow were higher, and the margin improved.
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
$358.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$543.0M
Cash generated by operations before capital spending.
CapEx
$184.8M
Capital spending and related asset purchases.
FCF margin
18.7%
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 | $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% |
| 2025-12-31 | $1.9B | $543.0M | $184.8M | $358.2M | 18.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 142.1% | 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.
Operating cash flow strength
Operating cash flow was higher than the same quarter last year despite stable revenue, indicating improved cash conversion efficiency. This was the strongest observable driver of the higher free cash flow margin.
The increase in operating cash flow directly lifted free cash flow and margin compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the year-ago quarter, while operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure was higher than a year ago but lower than the prior quarter, supporting the conversion of operating cash flow into free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter a year ago, revenue was stable, operating cash flow and free cash flow were higher, and the margin improved.
Monitor the trend in capital expenditure relative to operating cash flow, as it was lower sequentially but higher year over year.