Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive, driving a sharp improvement in free cash flow and margin compared to the prior quarter and the same quarter last year. Revenue decreased slightly versus the prior quarter and more notably versus the year-ago period.
- Revenue was lower sequentially and year-over-year, yet operating cash flow rose from negative to positive, while capital expenditure declined. The combination produced a free cash flow that was positive and well above the prior quarter's negative level and the prior year's minimal positive figure, resulting in a significantly improved free cash flow margin.
- Compared with the immediately preceding quarter, revenue was slightly lower but operating cash flow, free cash flow, and margin all improved substantially. Versus the same quarter one year earlier, revenue was lower, while operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were markedly stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$563.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$564.0M
Capital spending and related asset purchases.
FCF margin
5.6%
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 | $10.4B | $814.0M | $767.0M | $47.0M | 0.5% |
| 2025-03-31 | $10.4B | $91.0M | $685.0M | -$594.0M | -5.7% |
| 2025-06-30 | $10.1B | -$470.0M | $662.0M | -$1.1B | -11.2% |
| 2025-09-30 | $10.0B | $1.1B | $564.0M | $563.0M | 5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 908.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | 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 Turnaround
The strongest observable driver was the shift in operating cash flow from a negative figure in the prior quarter to a positive figure in the current quarter, which more than offset the lower revenue and allowed free cash flow to turn significantly positive.
This operating cash flow improvement directly produced a healthy free cash flow margin, reversing the prior quarter's negative margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower sequentially and year-over-year, yet operating cash flow rose from negative to positive, while capital expenditure declined. The combination produced a free cash flow that was positive and well above the prior quarter's negative level and the prior year's minimal positive figure, resulting in a significantly improved free cash flow margin.
Compared with the immediately preceding quarter, revenue was slightly lower but operating cash flow, free cash flow, and margin all improved substantially. Versus the same quarter one year earlier, revenue was lower, while operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were markedly stronger.
Monitor whether operating cash flow can sustain its positive trajectory given the lower revenue base.