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, driven by a significant increase in operating cash flow and a reduction in capital spending. Revenue was stable compared to the prior quarter but lower than the same quarter last year.
- Operating cash flow improved markedly from the prior quarter, while capital expenditure declined, resulting in a positive free cash flow margin. Compared to the same quarter last year, operating cash flow was higher and capital expenditure was slightly higher, yet free cash flow margin improved.
- Relative to the prior quarter, free cash flow shifted from negative to positive, with operating cash flow higher and capital expenditure lower. Versus the same quarter one year earlier, free cash flow was higher despite lower revenue, as operating cash flow increased and capital expenditure was only modestly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$738.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$577.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$983.0M
Cash generated by operations before capital spending.
CapEx
$406.0M
Capital spending and related asset purchases.
FCF margin
7.5%
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 | $7.8B | $1.9B | $504.0M | $1.4B | 18.1% |
| 2025-03-31 | $7.7B | -$579.0M | $483.0M | -$1.1B | -13.8% |
| 2025-06-30 | $7.7B | $351.0M | $539.0M | -$188.0M | -2.5% |
| 2025-09-30 | $7.7B | $983.0M | $406.0M | $577.0M | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -64.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | 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 recovery
Operating cash flow increased substantially from the prior quarter, while capital expenditure decreased, leading to a swing to positive free cash flow. The improvement in operating cash flow was the strongest observable factor.
The rise in operating cash flow was the primary driver behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved markedly from the prior quarter, while capital expenditure declined, resulting in a positive free cash flow margin. Compared to the same quarter last year, operating cash flow was higher and capital expenditure was slightly higher, yet free cash flow margin improved.
Relative to the prior quarter, free cash flow shifted from negative to positive, with operating cash flow higher and capital expenditure lower. Versus the same quarter one year earlier, free cash flow was higher despite lower revenue, as operating cash flow increased and capital expenditure was only modestly higher.
Monitor whether capital expenditure remains at the lower level seen this quarter, as it contributed to the free cash flow improvement.