Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive compared to a year ago, driven by a significant improvement in operating cash flow. However, free cash flow decreased from the preceding quarter as operating cash flow was lower despite reduced capital expenditure.
- Revenue increased from both the prior quarter and the year-ago period. Operating cash flow improved from a year ago but declined from the prior quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago period. The resulting free cash flow margin was positive, compared to negative a year ago, but lower than the prior quarter.
- Compared to the preceding quarter, free cash flow weakened due to lower operating cash flow, partially offset by lower capital spending. Year over year, free cash flow improved significantly from a negative to a positive position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$865.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$973.0M
Cash generated by operations before capital spending.
CapEx
$108.0M
Capital spending and related asset purchases.
FCF margin
1.4%
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 | $55.3B | -$396.0M | $99.0M | -$495.0M | -0.9% |
| 2025-03-31 | $54.9B | $2.9B | $126.0M | $2.8B | 5.1% |
| 2025-06-30 | $60.2B | $1.5B | $232.0M | $1.3B | 2.2% |
| 2025-09-30 | $64.0B | $973.0M | $108.0M | $865.0M | 1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 192.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Turnaround
The current quarter's operating cash flow reversed from a negative figure in the same quarter last year, enabling positive free cash flow.
This improvement provides a stronger cash generation base for the company's operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago period. Operating cash flow improved from a year ago but declined from the prior quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago period. The resulting free cash flow margin was positive, compared to negative a year ago, but lower than the prior quarter.
Compared to the preceding quarter, free cash flow weakened due to lower operating cash flow, partially offset by lower capital spending. Year over year, free cash flow improved significantly from a negative to a positive position.
Monitor the magnitude of opioid litigation payments in subsequent quarters, as they affected operating cash flow in the current period.