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, supported by a higher operating cash flow relative to capital expenditure, resulting in a positive margin. Revenue also increased compared to both the prior quarter and the same quarter last year.
- Operating cash flow improved from the preceding quarter, while capital expenditure rose modestly, allowing free cash flow to become positive. The free cash flow margin also shifted from negative to positive, reflecting better cash conversion.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and moderately higher capital expenditure. Versus the same quarter last year, free cash flow also strengthened from near zero to positive, with both revenue and operating cash flow higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$163.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$2.1B
Capital spending and related asset purchases.
FCF margin
2.4%
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 | $5.5B | $1.4B | $1.9B | -$510.0M | -9.3% |
| 2025-03-31 | $6.7B | $1.2B | $1.9B | -$746.0M | -11.1% |
| 2025-06-30 | $5.4B | $1.5B | $2.0B | -$502.0M | -9.3% |
| 2025-09-30 | $6.7B | $2.3B | $2.1B | $163.0M | 2.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 18.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.9% | 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 strength
Operating cash flow increased notably from both the prior quarter and the same quarter last year, which was the primary factor behind the free cash flow improvement. Revenue also contributed with a higher level.
The stronger operating cash flow enabled free cash flow to turn positive despite ongoing capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved from the preceding quarter, while capital expenditure rose modestly, allowing free cash flow to become positive. The free cash flow margin also shifted from negative to positive, reflecting better cash conversion.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and moderately higher capital expenditure. Versus the same quarter last year, free cash flow also strengthened from near zero to positive, with both revenue and operating cash flow higher.
Monitor the trend of capital expenditure relative to operating cash flow, given the elevated spending level in recent quarters.