Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter a year earlier, as higher capital expenditure offset a rise in operating cash flow. The free cash flow margin declined from both prior periods.
- Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow was higher year-over-year but lower sequentially. Capital expenditure rose significantly from the year-ago period, resulting in a free cash flow margin that was weaker than both prior quarters.
- Compared with the immediately preceding quarter, revenue and free cash flow were higher, operating cash flow was lower, capital expenditure was slightly lower, and the free cash flow margin was slightly weaker. Compared with the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was substantially higher, free cash flow was lower, and the margin was weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$485.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$954.0M
Capital spending and related asset purchases.
FCF margin
13.9%
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 | $3.4B | $1.2B | $3.8B | -$2.6B | -75.5% |
| 2025-03-31 | $4.2B | $1.4B | $1.0B | $421.0M | 10.1% |
| 2025-06-30 | $3.4B | $1.4B | $972.0M | $478.0M | 14.2% |
| 2025-09-30 | $3.5B | $1.4B | $954.0M | $485.0M | 13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 27.3% | 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.
Capital Expenditure Increase
Capital expenditure was higher than the year-ago quarter, while operating cash flow also increased. The net effect was a free cash flow margin that declined from both the prior quarter and the year-ago period.
The rise in capital spending is a key factor that reduced free cash flow relative to the year-ago quarter despite higher operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow was higher year-over-year but lower sequentially. Capital expenditure rose significantly from the year-ago period, resulting in a free cash flow margin that was weaker than both prior quarters.
Compared with the immediately preceding quarter, revenue and free cash flow were higher, operating cash flow was lower, capital expenditure was slightly lower, and the free cash flow margin was slightly weaker. Compared with the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was substantially higher, free cash flow was lower, and the margin was weaker.
Monitor the trend in capital expenditure, which rose substantially from the year-ago quarter and continues to be a significant use of cash.