Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive as operating cash flow increased more than capital expenditure. The margin improved significantly compared with the prior quarter but remained below the year-ago level.
- Revenue and operating cash flow both rose from the previous quarter and the year-ago quarter. Capital expenditure was higher than the year-ago period but slightly lower than the prior quarter, resulting in positive free cash flow and a margin that moved from negative to positive sequentially.
- Compared with the immediately preceding quarter, operating cash flow improved and capital expenditure decreased marginally, flipping free cash flow from negative to positive and expanding the margin. Relative to the same quarter one year ago, both revenue and operating cash flow were higher, but capital expenditure increased substantially, leading to lower free cash flow and a narrower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$246.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$1.9B
Capital spending and related asset purchases.
FCF margin
6.5%
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 | $2.7B | $1.4B | $1.6B | -$193.8M | -7.1% |
| 2025-03-31 | $2.8B | $536.2M | $1.7B | -$1.1B | -39.5% |
| 2025-06-30 | $3.3B | $1.3B | $2.0B | -$746.6M | -22.4% |
| 2025-09-30 | $3.8B | $2.1B | $1.9B | $246.0M | 6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 35.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 49.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.5B | 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 Strength
Operating cash flow increased from both the prior quarter and the year-ago quarter, providing the cash generation needed to cover a higher capital expenditure level.
This improvement was the strongest observable driver behind the return to positive free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both rose from the previous quarter and the year-ago quarter. Capital expenditure was higher than the year-ago period but slightly lower than the prior quarter, resulting in positive free cash flow and a margin that moved from negative to positive sequentially.
Compared with the immediately preceding quarter, operating cash flow improved and capital expenditure decreased marginally, flipping free cash flow from negative to positive and expanding the margin. Relative to the same quarter one year ago, both revenue and operating cash flow were higher, but capital expenditure increased substantially, leading to lower free cash flow and a narrower margin.
Monitor the trajectory of capital expenditure as its increase from the year-ago quarter was the primary factor reducing free cash flow despite higher operating cash flow.