Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a negative prior quarter, with margin improving sequentially but remaining below the year-ago level. Revenue was stable compared to the same quarter last year.
- Revenue was higher than the prior quarter and comparable to the same quarter last year. Operating cash flow was substantially higher than the prior quarter but slightly lower than the year-ago quarter, while capital expenditure increased versus both periods. Free cash flow and margin improved from the prior quarter but declined from the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow shifted from negative to positive and margin improved markedly. Compared to the same quarter one year earlier, free cash flow and margin were lower, even though revenue was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$339.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$225.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$937.7M
Cash generated by operations before capital spending.
CapEx
$712.3M
Capital spending and related asset purchases.
FCF margin
12.8%
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 | $1.2B | $395.6M | $514.2M | -$118.6M | -9.7% |
| 2025-03-31 | $1.3B | $449.6M | $592.8M | -$143.2M | -11.1% |
| 2025-06-30 | $1.4B | $323.9M | $627.3M | -$303.4M | -22.4% |
| 2025-09-30 | $1.8B | $937.7M | $712.3M | $225.4M | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 47.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 40.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow was substantially higher than the prior quarter, driving the swing from negative free cash flow to positive free cash flow. This improvement in cash from operations is the most observable change.
The stronger operating cash flow enabled positive free cash flow despite higher capital expenditure.
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 comparable to the same quarter last year. Operating cash flow was substantially higher than the prior quarter but slightly lower than the year-ago quarter, while capital expenditure increased versus both periods. Free cash flow and margin improved from the prior quarter but declined from the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow shifted from negative to positive and margin improved markedly. Compared to the same quarter one year earlier, free cash flow and margin were lower, even though revenue was similar.
Capital expenditure levels, which increased both sequentially and year-over-year, warrant monitoring as they affect free cash flow generation.