Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow turned positive and improved significantly from the prior quarter, while free cash flow margin expanded. Revenue was higher than both the prior quarter and the same quarter a year ago.
- Revenue increased, operating cash flow grew substantially, and capital expenditure rose moderately. The resulting free cash flow turned positive and the free cash flow margin improved, reflecting stronger cash conversion from operations.
- Compared with the immediately preceding quarter, operating cash flow was much higher and free cash flow shifted from negative to positive, with a higher margin. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$249.8M
Capital spending and related asset purchases.
FCF margin
3.4%
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 | $81.5B | -$2.7B | $105.9M | -$2.8B | -3.5% |
| 2025-03-31 | $75.5B | $3.4B | $129.1M | $3.2B | 4.3% |
| 2025-06-30 | $80.7B | $109.2M | $183.2M | -$74.0M | -0.1% |
| 2025-09-30 | $83.7B | $3.1B | $249.8M | $2.9B | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -848.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | 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 flow generation
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin.
The increase in operating cash flow was the primary factor behind the sharp rise in free cash flow and the expansion of the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, operating cash flow grew substantially, and capital expenditure rose moderately. The resulting free cash flow turned positive and the free cash flow margin improved, reflecting stronger cash conversion from operations.
Compared with the immediately preceding quarter, operating cash flow was much higher and free cash flow shifted from negative to positive, with a higher margin. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin were all higher.
Monitor the impact of opioid litigation payments, which the filing notes will be made over the next several years, on future cash flows.