Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow margin weakened compared to the prior quarter but was lower than the year-ago quarter.
- Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure was higher than both periods. This resulted in free cash flow that was lower than both the prior quarter and the year-ago quarter, with a free cash flow margin that weakened sequentially and year-over-year.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a lower free cash flow and a weakened margin. Compared to the same quarter last year, revenue was higher but operating cash flow was lower, resulting in a lower free cash flow and a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$348.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$498.0M
Cash generated by operations before capital spending.
CapEx
$149.4M
Capital spending and related asset purchases.
FCF margin
10.9%
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 | $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% |
| 2025-12-31 | $3.2B | $498.0M | $149.4M | $348.6M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 29.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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 Decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, despite higher revenue. The filing context notes increased working capital, primarily due to increased cash and marketable securities from product revenue growth and increased inventories to support recent commercial launches.
The lower operating cash flow directly reduced free cash flow and margin compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure was higher than both periods. This resulted in free cash flow that was lower than both the prior quarter and the year-ago quarter, with a free cash flow margin that weakened sequentially and year-over-year.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a lower free cash flow and a weakened margin. Compared to the same quarter last year, revenue was higher but operating cash flow was lower, resulting in a lower free cash flow and a weakened margin.
Monitor the relationship between revenue growth and operating cash flow, as revenue increased while operating cash flow declined.