Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative in the current quarter, reversing from a positive level in the prior quarter. The margin improved compared to the same quarter last year, though it remained negative.
- Revenue increased from both the prior quarter and the year-ago quarter, but operating cash flow was negative, resulting in negative free cash flow with a negative margin. Capital expenditure was lower than the prior quarter but higher than a year ago.
- Compared to the prior quarter, revenue was higher, while operating cash flow and free cash flow weakened from positive to negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow improved (less negative), and the margin was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$2.3B
Cash generated by operations before capital spending.
CapEx
$119.4M
Capital spending and related asset purchases.
FCF margin
-2.8%
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 | $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% |
| 2025-12-31 | $85.9B | -$2.3B | $119.4M | -$2.4B | -2.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -433.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.2B | 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 Turned Negative
Operating cash flow moved from a positive level in the prior quarter to a negative level in the current quarter, even as revenue increased. Capital expenditure was relatively stable in comparison.
This shift was the strongest observable driver of the negative free cash flow, as capital expenditure did not change enough to offset the operating cash flow decline.
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, but operating cash flow was negative, resulting in negative free cash flow with a negative margin. Capital expenditure was lower than the prior quarter but higher than a year ago.
Compared to the prior quarter, revenue was higher, while operating cash flow and free cash flow weakened from positive to negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow improved (less negative), and the margin was less negative.
Monitor the projected opioid litigation payments over the next thirteen years as disclosed in the liquidity and capital resources discussion.