Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
First Solar generated strong free cash flow in the fourth quarter, driven by solid operating cash flow and reduced capital spending. Compared to the same quarter last year, free cash flow and margin improved significantly, though the margin was slightly lower than the prior quarter.
- Revenue growth supported an increase in operating cash flow, which remained a high proportion of sales. Lower capital expenditure further boosted free cash flow, resulting in a robust free cash flow margin.
- Free cash flow was stable compared to the preceding quarter as a slight decline in operating cash flow was offset by lower capital spending. Year over year, free cash flow and margin improved markedly due to higher operating cash flow and reduced investment outlays.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$171.7M
Capital spending and related asset purchases.
FCF margin
63.6%
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 | $844.6M | -$608.0M | $206.0M | -$813.9M | -96.4% |
| 2025-06-30 | $1.1B | $149.6M | $288.1M | -$138.6M | -12.6% |
| 2025-09-30 | $1.6B | $1.3B | $204.0M | $1.1B | 67.1% |
| 2025-12-31 | $1.7B | $1.2B | $171.7M | $1.1B | 63.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 205.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.3B | 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 expansion and disciplined capital spending
The combination of higher revenue and reduced capital expenditure relative to last year drove a substantial increase in free cash flow. Operating cash flow grew while capital outlays declined, leading to an improved conversion rate.
This trend, if sustained, supports future investment without external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth supported an increase in operating cash flow, which remained a high proportion of sales. Lower capital expenditure further boosted free cash flow, resulting in a robust free cash flow margin.
Free cash flow was stable compared to the preceding quarter as a slight decline in operating cash flow was offset by lower capital spending. Year over year, free cash flow and margin improved markedly due to higher operating cash flow and reduced investment outlays.
Monitor the impact of regulatory changes and tax credit market dynamics on future cash flows, as noted in the filing.