Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow rose sharply from both the prior quarter and the year-ago quarter, driving free cash flow to a positive level after a negative year-ago result. Revenue was lower sequentially but remained higher than the prior year, while free cash flow margin improved substantially compared with both periods.
- Revenue decreased from the preceding quarter, yet operating cash flow increased markedly, indicating a higher conversion of revenue into cash. Consequently, free cash flow and free cash flow margin both improved significantly, supported by lower capital expenditure than the year-ago quarter.
- Compared with the immediately preceding quarter, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all substantially higher. Versus the same quarter one year earlier, revenue was higher, capital expenditure was lower, and operating cash flow, free cash flow, and free cash flow margin all improved strongly, flipping from a negative free cash flow and negative margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$909.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$131.0M
Capital spending and related asset purchases.
FCF margin
18.8%
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 | $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% |
| 2025-12-31 | $4.8B | $1.0B | $131.0M | $909.0M | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1715.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Generation
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable sequentially and decreased year-over-year. This combination drove a substantial improvement in free cash flow and free cash flow margin.
The quarter delivered a positive free cash flow and a healthy free cash flow margin, contrasting with the negative margin a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from the preceding quarter, yet operating cash flow increased markedly, indicating a higher conversion of revenue into cash. Consequently, free cash flow and free cash flow margin both improved significantly, supported by lower capital expenditure than the year-ago quarter.
Compared with the immediately preceding quarter, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all substantially higher. Versus the same quarter one year earlier, revenue was higher, capital expenditure was lower, and operating cash flow, free cash flow, and free cash flow margin all improved strongly, flipping from a negative free cash flow and negative margin.
Monitor whether the elevated operating cash flow can be sustained if revenue declines further, given the sequential revenue decrease.