Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Free cash flow margin improved year over year but weakened sequentially, reflecting changes in capital spending and operating cash flow.
- Operating cash flow decreased from the prior quarter and was slightly lower than the year-ago quarter. Capital expenditure increased from the prior quarter but decreased from the year-ago quarter, resulting in free cash flow that was lower sequentially but higher year over year.
- Compared to the prior quarter, free cash flow and its margin declined as operating cash flow fell and capital expenditure rose. Compared to the same quarter last year, free cash flow and margin improved, driven by lower capital expenditure despite a modest decrease in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$732.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$893.0M
Cash generated by operations before capital spending.
CapEx
$161.0M
Capital spending and related asset purchases.
FCF margin
30.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $2.4B | $893.0M | $161.0M | $732.0M | 30.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.6B | 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 Variation
Capital expenditure was lower than the same quarter last year but higher than the prior quarter, creating opposing effects on free cash flow.
This spending pattern was the strongest observable driver behind the year-over-year improvement and the sequential decline in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased from the prior quarter and was slightly lower than the year-ago quarter. Capital expenditure increased from the prior quarter but decreased from the year-ago quarter, resulting in free cash flow that was lower sequentially but higher year over year.
Compared to the prior quarter, free cash flow and its margin declined as operating cash flow fell and capital expenditure rose. Compared to the same quarter last year, free cash flow and margin improved, driven by lower capital expenditure despite a modest decrease in operating cash flow.
Inventory levels, which increased due to stock built up to support production for anticipated demand.