Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the prior quarter, driven by higher operating cash flow and a slightly larger capital expenditure. Compared to the same quarter a year ago, free cash flow margin weakened even though revenue increased.
- Revenue was lower than the preceding quarter but higher than a year ago. Operating cash flow rose sequentially, yielding a higher free cash flow and an improved free cash flow margin. The year-over-year comparison shows a lower free cash flow margin despite a higher operating cash flow and a larger capital expenditure.
- Sequentially, free cash flow margin improved as operating cash flow grew while revenue contracted. Year over year, free cash flow margin weakened as revenue growth was outpaced by a proportionally larger increase in capital expenditure and a modest rise in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$363.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$418.7M
Cash generated by operations before capital spending.
CapEx
$55.0M
Capital spending and related asset purchases.
FCF margin
18.2%
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 | $2.0B | $506.3M | $51.5M | $454.8M | 22.5% |
| 2025-03-31 | $1.9B | $382.8M | $44.6M | $338.2M | 17.7% |
| 2025-06-30 | $2.1B | $378.2M | $50.1M | $328.1M | 15.8% |
| 2025-09-30 | $2.0B | $418.7M | $55.0M | $363.7M | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 157.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger operating cash flow
Operating cash flow rose sequentially, driving a higher free cash flow and an improved margin. This was the primary observable factor behind the quarter's cash conversion improvement.
The sequential increase in operating cash flow more than offset the slight decline in revenue, resulting in higher free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter but higher than a year ago. Operating cash flow rose sequentially, yielding a higher free cash flow and an improved free cash flow margin. The year-over-year comparison shows a lower free cash flow margin despite a higher operating cash flow and a larger capital expenditure.
Sequentially, free cash flow margin improved as operating cash flow grew while revenue contracted. Year over year, free cash flow margin weakened as revenue growth was outpaced by a proportionally larger increase in capital expenditure and a modest rise in operating cash flow.
Monitor the trajectory of capital expenditure relative to operating cash flow, as a growing gap could further pressure free cash flow margin.