Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated significant positive free cash flow this quarter, a notable improvement from negative free cash flow in both the preceding quarter and the same quarter last year. Both operating cash flow and revenue increased, while capital expenditure decreased relative to the prior periods.
- Free cash flow turned positive as operating cash flow grew substantially compared to revenue, and capital expenditure was reduced. The free cash flow margin improved from negative to positive, reflecting more efficient cash conversion.
- Compared to the preceding quarter, free cash flow shifted from negative to positive, driven by a large increase in operating cash flow and a slight decrease in capital spending. Versus the same quarter one year earlier, the improvement was even more pronounced, with higher revenue and operating cash flow combined with lower capital expenditure.
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
$522.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$973.0M
Capital spending and related asset purchases.
FCF margin
8.3%
The share of revenue converted into free cash flow.
TTM FCF yield
2.0%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $1.5B | Cash generated by operations before capital spending. |
| Capital expenditures | $973.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $522.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $6.2B | $1.6B | $863.0M | $758.0M | 12.3% |
| 2022-09-30 | $5.3B | $758.0M | $836.0M | -$78.0M | -1.5% |
| 2022-12-31 | $5.4B | $1.1B | $1.0B | $22.0M | 0.4% |
| 2023-03-31 | $5.1B | $1.1B | $1.1B | -$71.0M | -1.4% |
| 2023-06-30 | $5.9B | $1.7B | $1.2B | $510.0M | 8.6% |
| 2023-09-30 | $5.9B | $1.2B | $1.2B | $58.0M | 1.0% |
| 2023-12-31 | $5.8B | $1.3B | $1.4B | -$42.0M | -0.7% |
| 2024-03-31 | $6.2B | $1.9B | $1.3B | $642.0M | 10.3% |
| 2024-06-30 | $6.4B | $2.0B | $1.1B | $840.0M | 13.1% |
| 2024-09-30 | $6.7B | $1.9B | $1.2B | $673.0M | 10.1% |
| 2024-12-31 | $5.9B | $1.4B | $1.2B | $197.0M | 3.4% |
| 2025-03-31 | $5.6B | $1.1B | $1.2B | -$114.0M | -2.0% |
| 2025-06-30 | $7.5B | $2.2B | $1.3B | $934.0M | 12.4% |
| 2025-09-30 | $6.8B | $1.7B | $1.1B | $608.0M | 8.9% |
| 2025-12-31 | $5.3B | $693.0M | $1.0B | -$312.0M | -5.9% |
| 2026-03-31 | $6.3B | $1.5B | $973.0M | $522.0M | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | 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 surge
Operating cash flow increased sharply compared to both prior quarters, while capital expenditure remained relatively stable, enabling the transition to positive free cash flow.
The company’s cash generation capability improved significantly, supported by higher revenue and disciplined spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow turned positive as operating cash flow grew substantially compared to revenue, and capital expenditure was reduced. The free cash flow margin improved from negative to positive, reflecting more efficient cash conversion.
Compared to the preceding quarter, free cash flow shifted from negative to positive, driven by a large increase in operating cash flow and a slight decrease in capital spending. Versus the same quarter one year earlier, the improvement was even more pronounced, with higher revenue and operating cash flow combined with lower capital expenditure.
Monitor the insurance settlement receivable related to the PT Freeport Indonesia incident, as its collection could provide additional cash inflows.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $87.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 53.3x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |