Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was unchanged sequentially but higher year-over-year; the filing includes standard management discussion and liquidity sections. Free cash flow and free cash flow margin weakened against both comparison periods, as capital spending increased while operating cash flow stayed relatively stable.
- Operating cash flow was similar to the year-ago level but slightly lower than the prior quarter. Capital expenditure rose significantly, causing free cash flow to fall and the free cash flow margin to narrow.
- Compared to the prior quarter, free cash flow and margin declined sharply. Versus the same quarter last year, free cash flow was lower despite higher revenue, as capital expenditure more than offset the revenue gain.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$596.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$836.0M
Capital spending and related asset purchases.
FCF margin
12.4%
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 | $4.3B | $599.0M | $768.0M | -$169.0M | -4.0% |
| 2025-06-30 | $3.8B | $572.0M | $690.0M | -$118.0M | -3.1% |
| 2025-09-30 | $4.8B | $1.5B | $458.0M | $1.0B | 21.1% |
| 2025-12-31 | $4.8B | $1.4B | $836.0M | $596.0M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 255.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.3B | 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 Growth
Capital expenditure was higher than in the immediately preceding quarter and the same quarter one year earlier.
This increase in spending reduced free cash flow despite steady operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was similar to the year-ago level but slightly lower than the prior quarter. Capital expenditure rose significantly, causing free cash flow to fall and the free cash flow margin to narrow.
Compared to the prior quarter, free cash flow and margin declined sharply. Versus the same quarter last year, free cash flow was lower despite higher revenue, as capital expenditure more than offset the revenue gain.
The magnitude of the increase in capital expenditure relative to both prior periods warrants attention.