Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was lower than both the prior quarter and the same quarter last year. Free cash flow turned positive compared to a negative figure one year ago, but was lower than the preceding quarter.
- Operating cash flow improved versus the prior year but weakened sequentially, while capital expenditure increased compared to both periods. The resulting free cash flow margin improved from the year-ago negative level but was lower than the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow significantly improved from negative to positive, resulting in a positive margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$224.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$341.0M
Cash generated by operations before capital spending.
CapEx
$117.0M
Capital spending and related asset purchases.
FCF margin
4.0%
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 | $5.1B | $132.0M | $217.0M | -$85.0M | -1.7% |
| 2025-03-31 | $5.2B | $483.0M | $63.0M | $420.0M | 8.0% |
| 2025-06-30 | $6.1B | $649.0M | $81.0M | $568.0M | 9.3% |
| 2025-09-30 | $5.6B | $341.0M | $117.0M | $224.0M | 4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 52.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Flow Recovery
Operating cash flow and free cash flow turned from negative in the same quarter last year to positive in the current quarter. This shift is the strongest observable driver of the quarter's cash conversion performance.
The improvement in cash flow generation relative to the prior year provided a meaningful change in free cash flow profile.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved versus the prior year but weakened sequentially, while capital expenditure increased compared to both periods. The resulting free cash flow margin improved from the year-ago negative level but was lower than the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow significantly improved from negative to positive, resulting in a positive margin.
Monitor the level of capital expenditure relative to operating cash flow, as it increased in the current quarter while operating cash flow declined.