Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose even with lower revenue, but remained lower than the prior year quarter due to significantly higher capital expenditure. Cash conversion margin strengthened from the prior quarter but weakened from a year ago.
- Operating cash flow increased compared to the prior quarter despite lower revenue, resulting in a higher free cash flow margin. The cash conversion rate improved sequentially but declined year-over-year.
- Sequentially, free cash flow and margin improved as operating cash flow rose and capital expenditure increased only modestly. Year-over-year, free cash flow and margin weakened due to a substantial rise in capital expenditure, despite higher operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$277.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$150.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$605.0M
Cash generated by operations before capital spending.
CapEx
$455.0M
Capital spending and related asset purchases.
FCF margin
3.0%
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 | $3.9B | $397.0M | $260.0M | $137.0M | 3.5% |
| 2025-03-31 | $5.3B | -$288.0M | $330.0M | -$618.0M | -11.7% |
| 2025-06-30 | $7.4B | $476.0M | $422.0M | $54.0M | 0.7% |
| 2025-09-30 | $5.0B | $605.0M | $455.0M | $150.0M | 3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -13.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.2% | 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.
Capital Expenditure Increase
Capital expenditure was substantially higher compared to both the prior quarter and the year-ago quarter, consuming a larger portion of operating cash flow.
If capital expenditure remains elevated, it may continue to weigh on free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased compared to the prior quarter despite lower revenue, resulting in a higher free cash flow margin. The cash conversion rate improved sequentially but declined year-over-year.
Sequentially, free cash flow and margin improved as operating cash flow rose and capital expenditure increased only modestly. Year-over-year, free cash flow and margin weakened due to a substantial rise in capital expenditure, despite higher operating cash flow.
Monitor the trajectory of capital expenditure, which increased significantly versus both the prior quarter and the year-ago period.