Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the prior quarter but weakened compared to the same quarter last year. The cash conversion rate rose from the previous quarter yet remained below the year-ago level.
- Revenue increased while operating cash flow grew at a slower pace, leading to a free cash flow margin that was higher than the prior quarter but lower than the same quarter one year earlier. Capital expenditure was lower than the previous quarter but higher than the year-ago period.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$101.8M
Capital spending and related asset purchases.
FCF margin
37.0%
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 | $2.9B | $584.6M | $92.6M | $492.0M | 16.9% |
| 2025-03-31 | $2.8B | $818.9M | $40.7M | $778.2M | 28.1% |
| 2025-06-30 | $3.0B | $1.1B | $145.7M | $927.4M | 31.3% |
| 2025-09-30 | $3.1B | $1.2B | $101.8M | $1.1B | 37.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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.
Revenue growth supporting cash generation
Revenue was higher than both the prior quarter and the same quarter last year, providing a larger base for cash conversion. Operating cash flow increased sequentially, contributing to the improvement in free cash flow.
Higher revenue was the strongest observable driver of the sequential improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew at a slower pace, leading to a free cash flow margin that was higher than the prior quarter but lower than the same quarter one year earlier. Capital expenditure was lower than the previous quarter but higher than the year-ago period.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite higher revenue.