Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive versus the same quarter last year, driven by strong operating cash flow. Margins improved sequentially despite a slight decline from the prior quarter.
- Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow was higher than the year-ago period but lower than the previous quarter. Capital expenditure remained relatively stable, resulting in free cash flow that improved significantly from the year-ago loss but decreased from the prior quarter. The free cash flow margin rose from a negative level a year ago but fell from the previous quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, and the margin weakened. Versus the same quarter one year earlier, all cash flow metrics improved, with free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$211.0M
Capital spending and related asset purchases.
FCF margin
2.6%
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 | $36.3B | -$587.0M | $154.0M | -$741.0M | -2.0% |
| 2025-03-31 | $42.5B | $1.5B | $135.0M | $1.4B | 3.2% |
| 2025-06-30 | $42.5B | $1.8B | $208.0M | $1.6B | 3.7% |
| 2025-09-30 | $44.9B | $1.4B | $211.0M | $1.1B | 2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -17.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$525.0M | 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
Operating cash flow shifted from a large outflow a year ago to a substantial inflow this quarter, the strongest observable change across the metrics.
This directly enabled free cash flow to become positive and improve the margin year over year.
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 quarter, while operating cash flow was higher than the year-ago period but lower than the previous quarter. Capital expenditure remained relatively stable, resulting in free cash flow that improved significantly from the year-ago loss but decreased from the prior quarter. The free cash flow margin rose from a negative level a year ago but fell from the previous quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, and the margin weakened. Versus the same quarter one year earlier, all cash flow metrics improved, with free cash flow turning from negative to positive.
Monitor whether operating cash flow can sustain its positive level relative to revenue in the coming quarters.