Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to the same quarter a year ago, but declined sharply from the prior quarter. The free cash flow margin weakened sequentially while improving from a negative margin a year ago.
- Revenue was higher year-over-year, but operating cash flow represented a smaller portion of revenue compared to the prior quarter, resulting in a lower free cash flow margin. Compared to the same quarter last year, cash conversion improved as free cash flow turned positive.
- Revenue was slightly lower than the prior quarter, but higher than the same quarter last year. Operating cash flow and free cash flow weakened significantly from the prior quarter, while improving from the negative levels of the prior year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$224.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$437.0M
Cash generated by operations before capital spending.
CapEx
$213.0M
Capital spending and related asset purchases.
FCF margin
0.5%
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 | $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% |
| 2025-12-31 | $44.7B | $437.0M | $213.0M | $224.0M | 0.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -20.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $395.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow recovery
Revenue increased compared to the same quarter last year, and free cash flow shifted from negative to positive. The free cash flow margin improved from negative to positive.
This recovery provides a stronger cash generation base relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher year-over-year, but operating cash flow represented a smaller portion of revenue compared to the prior quarter, resulting in a lower free cash flow margin. Compared to the same quarter last year, cash conversion improved as free cash flow turned positive.
Revenue was slightly lower than the prior quarter, but higher than the same quarter last year. Operating cash flow and free cash flow weakened significantly from the prior quarter, while improving from the negative levels of the prior year.
Monitor the consistency of operating cash flow, as the sequential decline from the prior quarter was significant, and the filing context notes that full-year operating cash flow was influenced by pharmacy rebate timing and medical claims liabilities.