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 last year, but decreased sharply from the prior quarter. Operating cash flow improved year-over-year while capital expenditure remained similar, yet the sequential decline in revenue and operating cash flow was substantial.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow followed a similar pattern, resulting in a free cash flow margin that was positive versus negative a year earlier but much weaker than the previous quarter.
- Compared to the prior quarter, revenue and operating cash flow were significantly lower, leading to a much lower free cash flow margin. Compared to the same quarter last year, revenue and operating cash flow were higher, and free cash flow improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$36.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$193.0M
Cash generated by operations before capital spending.
CapEx
$157.0M
Capital spending and related asset purchases.
FCF margin
1.4%
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 | $4.0B | $4.2B | $181.0M | $4.0B | 100.4% |
| 2025-03-31 | $4.4B | -$2.1B | $94.0M | -$2.2B | -49.9% |
| 2025-06-30 | $6.5B | $947.0M | $118.0M | $829.0M | 12.8% |
| 2025-09-30 | $2.6B | $193.0M | $157.0M | $36.0M | 1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -11.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.0% | 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.
Sequential decline in operating cash flow
Operating cash flow dropped substantially from the prior quarter, while capital expenditure increased slightly, causing free cash flow to narrow sharply. The year-over-year improvement in operating cash flow was the primary factor behind the positive free cash flow compared to last year.
The sharp sequential decline in operating cash flow offset the year-over-year gain, leaving free cash flow materially lower than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow followed a similar pattern, resulting in a free cash flow margin that was positive versus negative a year earlier but much weaker than the previous quarter.
Compared to the prior quarter, revenue and operating cash flow were significantly lower, leading to a much lower free cash flow margin. Compared to the same quarter last year, revenue and operating cash flow were higher, and free cash flow improved from negative to positive.
Monitor the trend of free cash flow margin, as it shifted from negative to positive year-over-year but weakened sharply sequentially.