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 in the current quarter, with a significant improvement in cash conversion compared to the prior quarter. Free cash flow margin was higher than both the prior quarter and the year-ago quarter, and the company's cash and cash equivalents increased from the end of the prior fiscal year.
- Revenue was higher than the prior quarter, and operating cash flow turned positive, leading to strong free cash flow. Capital expenditure was slightly higher than the prior quarter but lower than a year ago, contributing to a free cash flow margin that improved markedly.
- Compared to the immediately preceding quarter, free cash flow improved from negative to positive, driven by a substantial increase in operating cash flow. Versus the same quarter last year, free cash flow was slightly higher, with a similar margin.
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
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$108.0M
Capital spending and related asset purchases.
FCF margin
24.0%
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 | $3.5B | $284.0M | $122.0M | $162.0M | 4.6% |
| 2025-06-30 | $3.4B | $601.0M | $207.0M | $394.0M | 11.6% |
| 2025-09-30 | $3.5B | -$340.0M | $96.0M | -$436.0M | -12.5% |
| 2025-12-31 | $4.2B | $1.1B | $108.0M | $1.0B | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 627.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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
The sharp turnaround in operating cash flow from negative to positive was the primary driver of free cash flow generation. Revenue growth also contributed to the improvement.
This recovery enabled the company to achieve a free cash flow margin that exceeded both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow turned positive, leading to strong free cash flow. Capital expenditure was slightly higher than the prior quarter but lower than a year ago, contributing to a free cash flow margin that improved markedly.
Compared to the immediately preceding quarter, free cash flow improved from negative to positive, driven by a substantial increase in operating cash flow. Versus the same quarter last year, free cash flow was slightly higher, with a similar margin.
The level of capital expenditure relative to operating cash flow, as it has varied between periods.