Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially and higher year-over-year. Operating cash flow improved, but higher capital expenditure caused free cash flow to be lower than the prior quarter, while still well above the year-ago level.
- Operating cash flow was higher than the prior quarter, but capital expenditure was also significantly higher, leading to free cash flow that was lower. The free cash flow margin weakened slightly sequentially but improved markedly year-over-year.
- Sequentially, revenue was stable while operating cash flow improved; however, free cash flow and margin were lower due to higher capital expenditure. Year-over-year, all metrics improved, with free cash flow and margin showing notable increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$619.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$815.8M
Cash generated by operations before capital spending.
CapEx
$196.5M
Capital spending and related asset purchases.
FCF margin
16.8%
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 | $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% |
| 2025-12-31 | $3.7B | $815.8M | $196.5M | $619.3M | 16.8% |
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 | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.1B | 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 Improvement
Operating cash flow was higher than both the prior quarter and the same quarter last year, supporting free cash flow despite higher capital expenditure.
The improvement in operating cash flow was the primary factor behind the strong year-over-year free cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter, but capital expenditure was also significantly higher, leading to free cash flow that was lower. The free cash flow margin weakened slightly sequentially but improved markedly year-over-year.
Sequentially, revenue was stable while operating cash flow improved; however, free cash flow and margin were lower due to higher capital expenditure. Year-over-year, all metrics improved, with free cash flow and margin showing notable increases.
Monitor the level of capital expenditure, as it increased sharply from both the prior quarter and the year-ago period, impacting free cash flow.