Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, free cash flow, and margin all improved from the preceding quarter but were lower than the same quarter one year earlier. The sequential improvement was driven primarily by stronger operating cash flow.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin increased sequentially, indicating a higher proportion of revenue converted to free cash flow compared to the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin were all higher. Compared to the same quarter one year earlier, all these metrics were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$421.0M
Capital spending and related asset purchases.
FCF margin
14.6%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $9.0B | $553.0M | $251.0M | $302.0M | 3.4% |
| 2025-06-30 | $9.8B | $983.0M | $281.0M | $702.0M | 7.2% |
| 2025-09-30 | $9.0B | $979.0M | $278.0M | $701.0M | 7.8% |
| 2025-12-31 | $9.5B | $1.8B | $421.0M | $1.4B | 14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -548.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$28.0B | 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 Strength
Operating cash flow improved significantly from the prior quarter, while capital expenditure also increased. The stronger operating cash flow was the primary factor behind the sequential rise in free cash flow.
The higher operating cash flow more than offset the increase in capital expenditure, leading to improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin increased sequentially, indicating a higher proportion of revenue converted to free cash flow compared to the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin were all higher. Compared to the same quarter one year earlier, all these metrics were lower.
Monitor the company's use of a bridge loan facility to finance debt tender offers and repay a term loan, as noted in the filing, which may affect future liquidity and capital structure.