Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive this quarter after a negative prior quarter, driven by a large swing in operating cash flow. Revenue was stable compared to the prior quarter and higher than the same quarter last year.
- Operating cash flow generated over sixty percent of revenue as free cash flow, reflecting a cash conversion rate well above the prior quarter's negative figure and above the same quarter last year. Capital expenditure remained relatively stable as a portion of revenue.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow recovered from negative to positive, while revenue was essentially unchanged. Relative to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with the free cash flow margin improving from the prior year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$760.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$812.7M
Cash generated by operations before capital spending.
CapEx
$52.4M
Capital spending and related asset purchases.
FCF margin
60.9%
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 | $1.0B | -$74.2M | $44.8M | -$118.9M | -11.8% |
| 2025-06-30 | $1.1B | $1.1B | $52.6M | $1.1B | 98.7% |
| 2025-09-30 | $1.2B | -$378.9M | $50.9M | -$429.8M | -36.7% |
| 2025-12-31 | $1.2B | $812.7M | $52.4M | $760.3M | 60.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 287.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.6B | 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
The most notable change was the swing in operating cash flow from negative in the prior quarter to significantly positive in the current quarter, which directly drove free cash flow higher. This occurred despite revenue remaining stable.
Free cash flow and margin improved markedly, reversing the prior quarter's deficit and surpassing the same quarter last year's level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow generated over sixty percent of revenue as free cash flow, reflecting a cash conversion rate well above the prior quarter's negative figure and above the same quarter last year. Capital expenditure remained relatively stable as a portion of revenue.
Compared to the immediately preceding quarter, operating cash flow and free cash flow recovered from negative to positive, while revenue was essentially unchanged. Relative to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with the free cash flow margin improving from the prior year.
Monitor whether operating cash flow can sustain the positive level achieved this quarter, given the wide swing from the prior quarter.