Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Free cash flow improved significantly from the prior quarter, driven by higher operating cash flow, while capital expenditure was lower than both comparison periods.
- Operating cash flow as a share of revenue was higher than the prior quarter but slightly lower than the year-ago quarter. Free cash flow margin improved from the prior quarter and was broadly stable versus the year-ago quarter, reflecting lower capital expenditure relative to operating cash flow.
- Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter last year, revenue was stable, operating cash flow was slightly lower, capital expenditure was lower, and free cash flow was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$805.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$938.0M
Cash generated by operations before capital spending.
CapEx
$133.0M
Capital spending and related asset purchases.
FCF margin
33.5%
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 | $2.3B | $905.0M | $216.0M | $689.0M | 29.7% |
| 2025-03-31 | $2.2B | $515.0M | $178.0M | $337.0M | 15.3% |
| 2025-06-30 | $2.5B | $558.0M | $149.0M | $409.0M | 16.6% |
| 2025-09-30 | $2.4B | $938.0M | $133.0M | $805.0M | 33.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | 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 was substantially higher than the prior quarter, which was the primary factor behind the improvement in free cash flow. Capital expenditure was also lower than both comparison periods, further supporting free cash flow.
The combination of higher operating cash flow and lower capital expenditure drove free cash flow higher sequentially and kept it slightly above the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the prior quarter but slightly lower than the year-ago quarter. Free cash flow margin improved from the prior quarter and was broadly stable versus the year-ago quarter, reflecting lower capital expenditure relative to operating cash flow.
Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter last year, revenue was stable, operating cash flow was slightly lower, capital expenditure was lower, and free cash flow was slightly higher.
Monitor whether operating cash flow can sustain its current level relative to revenue, given the sequential improvement but slight year-over-year decline.