Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to the prior quarter, with free cash flow turning positive. Versus the same quarter last year, revenue was higher but free cash flow was lower due to weaker cash conversion.
- Revenue increased from the prior quarter, and operating cash flow improved more than proportionally, leading to a positive free cash flow margin versus a negative margin previously. Compared to the same quarter last year, the free cash flow margin was lower, indicating that a higher share of revenue was absorbed by capital expenditure and other cash outflows.
- Compared to the prior quarter, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, and capital expenditure was lower. Versus the same quarter a year ago, revenue and capital expenditure were higher, but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$722.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$618.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
10.7%
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 | $1.2B | $1.5B | -$326.0M | -8.2% |
| 2025-03-31 | $3.8B | $1.2B | $1.4B | -$184.0M | -4.8% |
| 2025-06-30 | $4.5B | $882.0M | $1.7B | -$830.0M | -18.3% |
| 2025-09-30 | $5.8B | $2.1B | $1.5B | $618.0M | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$36.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong sequential cash generation
Operating cash flow increased substantially from the prior quarter while capital expenditure declined, driving a swing from negative to positive free cash flow and a sharp improvement in margin.
This sequential turnaround in free cash flow is the most significant observable change in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow improved more than proportionally, leading to a positive free cash flow margin versus a negative margin previously. Compared to the same quarter last year, the free cash flow margin was lower, indicating that a higher share of revenue was absorbed by capital expenditure and other cash outflows.
Compared to the prior quarter, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, and capital expenditure was lower. Versus the same quarter a year ago, revenue and capital expenditure were higher, but operating cash flow, free cash flow, and margin were lower.
Monitor whether free cash flow margin can sustain a positive level given the lower operating cash flow conversion relative to the year-ago period.