Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow improved significantly from negative to positive, and free cash flow turned positive, leading to a positive free cash flow margin.
- Cash conversion strengthened markedly: operating cash flow was positive compared to negative in both comparative periods, supporting positive free cash flow despite a slightly lower capital expenditure.
- Compared to the prior quarter, revenue decreased while operating cash flow improved from negative to positive, and free cash flow also turned positive. Versus the same quarter last year, revenue increased, and both operating and free cash flows moved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$710.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$767.0M
Capital spending and related asset purchases.
FCF margin
13.8%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $4.8B | -$112.0M | $552.0M | -$664.0M | -13.9% |
| 2024-12-31 | $4.5B | -$1.0B | $729.0M | -$1.7B | -38.6% |
| 2025-03-31 | $6.1B | $107.0M | $806.0M | -$699.0M | -11.4% |
| 2025-06-30 | $5.2B | $1.5B | $767.0M | $710.0M | 13.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.9% | 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 Recovery
Operating cash flow improved substantially from negative levels in the prior quarter and year-ago quarter to positive territory, a clear improvement in cash generation.
This recovery was the primary factor behind free cash flow turning positive and the free cash flow margin rising from negative to positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened markedly: operating cash flow was positive compared to negative in both comparative periods, supporting positive free cash flow despite a slightly lower capital expenditure.
Compared to the prior quarter, revenue decreased while operating cash flow improved from negative to positive, and free cash flow also turned positive. Versus the same quarter last year, revenue increased, and both operating and free cash flows moved from negative to positive.
Monitor the sustainability of the positive free cash flow trend given the decrease in revenue from the prior quarter.