Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by higher operating cash flow and lower capital expenditure compared to the prior quarter and the same quarter last year. The free cash flow margin improved from negative territory in both comparison periods.
- Revenue increased while operating cash flow rose more than proportionally, resulting in a higher cash conversion rate. Capital expenditure decreased, further supporting the swing to positive free cash flow and a positive margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow shifting from negative to positive. Versus the same quarter one year earlier, the same metrics showed improvement, and capital expenditure was lower.
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
$116.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$988.0M
Capital spending and related asset purchases.
FCF margin
4.3%
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 | $1.9B | $817.0M | $1.3B | -$473.0M | -24.4% |
| 2025-03-31 | $2.1B | $431.0M | $1.1B | -$633.0M | -30.2% |
| 2025-06-30 | $2.2B | $862.0M | $1.1B | -$204.0M | -9.2% |
| 2025-09-30 | $2.7B | $1.1B | $988.0M | $116.0M | 4.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 18.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.2B | 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 Strength
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, while revenue also grew. This was the strongest observable factor behind the positive free cash flow.
Higher operating cash flow more than offset capital expenditure, enabling a positive free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose more than proportionally, resulting in a higher cash conversion rate. Capital expenditure decreased, further supporting the swing to positive free cash flow and a positive margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow shifting from negative to positive. Versus the same quarter one year earlier, the same metrics showed improvement, and capital expenditure was lower.
Monitor whether operating cash flow can sustain its current level relative to revenue in subsequent quarters.