Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable sequentially despite a slight revenue decline, and improved sharply versus the same quarter last year as capital expenditure moderated. Operating cash flow rose year-over-year, supporting a higher free cash flow margin.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased sequentially and year-over-year, while capital expenditure was higher than the prior quarter but lower than the same quarter last year. The resulting free cash flow was nearly unchanged from the prior quarter and significantly higher than a year ago, with the free cash flow margin stable sequentially and improved year-over-year.
- Compared to the prior quarter, revenue was slightly lower and free cash flow was stable, with a similar margin. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$810.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$888.0M
Capital spending and related asset purchases.
FCF margin
12.8%
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 | $6.0B | $1.2B | $831.0M | $377.0M | 6.3% |
| 2025-06-30 | $6.4B | $1.5B | $732.0M | $813.0M | 12.6% |
| 2025-09-30 | $6.4B | $1.6B | $776.0M | $816.0M | 12.7% |
| 2025-12-31 | $6.3B | $1.7B | $888.0M | $810.0M | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.1% | 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.
Improved Cash Conversion Year-Over-Year
Operating cash flow rose year-over-year while capital expenditure declined, resulting in a stronger free cash flow and a higher free cash flow margin compared to the same quarter last year.
The year-over-year increase in free cash flow margin was the most significant improvement among the key metrics.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased sequentially and year-over-year, while capital expenditure was higher than the prior quarter but lower than the same quarter last year. The resulting free cash flow was nearly unchanged from the prior quarter and significantly higher than a year ago, with the free cash flow margin stable sequentially and improved year-over-year.
Compared to the prior quarter, revenue was slightly lower and free cash flow was stable, with a similar margin. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved.
Monitor the relationship between operating cash flow and capital expenditure in upcoming quarters, as the sequential increase in capital expenditure reduced free cash flow relative to operating cash flow.