Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated positive free cash flow this quarter, recovering from a negative free cash flow in the prior quarter. Revenue remained stable sequentially and year-over-year, while free cash flow margin improved from the prior quarter but was lower than the same quarter last year.
- Operating cash flow increased substantially from the prior quarter, while capital expenditure decreased slightly, leading to a significant improvement in free cash flow. The free cash flow margin turned positive, reflecting higher cash conversion relative to revenue.
- Compared to the immediately preceding quarter, free cash flow improved markedly, driven by higher operating cash flow and lower capital spending. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$607.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$730.0M
Capital spending and related asset purchases.
FCF margin
16.9%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $3.5B | $1.4B | $838.0M | $550.0M | 15.5% |
| 2025-03-31 | $3.4B | $1.3B | $719.0M | $536.0M | 15.7% |
| 2025-06-30 | $3.6B | $635.0M | $776.0M | -$141.0M | -3.9% |
| 2025-09-30 | $3.6B | $1.3B | $730.0M | $607.0M | 16.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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
Operating cash flow rose sharply from the prior quarter, reversing a decline and supporting positive free cash flow.
This improvement was the primary factor behind the swing from negative to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from the prior quarter, while capital expenditure decreased slightly, leading to a significant improvement in free cash flow. The free cash flow margin turned positive, reflecting higher cash conversion relative to revenue.
Compared to the immediately preceding quarter, free cash flow improved markedly, driven by higher operating cash flow and lower capital spending. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower.
Monitor the impact of previously postponed tax payments and hurricane-related capital spending on future cash generation.