Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a significant increase in operating cash flow. Compared to the same quarter last year, free cash flow was lower despite similar revenue, reflecting a weaker cash conversion margin.
- Revenue was stable versus the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter but was lower than the year-ago quarter, leading to a free cash flow margin that improved sequentially but weakened year over year.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined while capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$658.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$744.9M
Cash generated by operations before capital spending.
CapEx
$86.8M
Capital spending and related asset purchases.
FCF margin
17.6%
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 | $3.5B | $482.7M | $140.4M | $342.3M | 9.7% |
| 2025-03-31 | $3.2B | $535.5M | $42.6M | $492.9M | 15.2% |
| 2025-06-30 | $3.6B | $219.7M | $52.9M | $166.8M | 4.7% |
| 2025-09-30 | $3.7B | $744.9M | $86.8M | $658.1M | 17.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.5B | 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 Recovery
Operating cash flow increased substantially from the prior quarter, driving a strong sequential improvement in free cash flow. This was the primary factor behind the quarter's cash conversion performance.
The sequential recovery in operating cash flow was the strongest observable driver of free cash flow improvement this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter but was lower than the year-ago quarter, leading to a free cash flow margin that improved sequentially but weakened year over year.
Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined while capital expenditure was slightly higher.
Monitor whether operating cash flow can sustain the sequential improvement or reverts toward the year-ago level.