Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose sharply in the current quarter, driven by a substantial increase in operating cash flow. Revenue was unchanged from the prior quarter and the same quarter last year, while capital expenditure was slightly lower.
- With revenue unchanged, operating cash flow improved markedly, and capital expenditure was slightly lower, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow were both higher, and the margin improved. Compared to the same quarter last year, all three metrics also showed improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$621.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$678.0M
Cash generated by operations before capital spending.
CapEx
$57.0M
Capital spending and related asset purchases.
FCF margin
27.7%
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 | $3.0B | $599.0M | $56.0M | $543.0M | 18.2% |
| 2025-03-31 | $2.2B | -$35.0M | $51.0M | -$86.0M | -3.9% |
| 2025-06-30 | $2.2B | $361.0M | $58.0M | $303.0M | 13.7% |
| 2025-09-30 | $2.2B | $678.0M | $57.0M | $621.0M | 27.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 204.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | 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
The increase in cash from operations was the strongest observable factor, as revenue was stable and capital expenditure was only slightly lower.
This drove the higher free cash flow and the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, operating cash flow improved markedly, and capital expenditure was slightly lower, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow were both higher, and the margin improved. Compared to the same quarter last year, all three metrics also showed improvement.
Monitor whether operating cash flow can sustain its current elevated level, given that revenue has remained flat.