Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than both the prior quarter and the same quarter last year, while operating cash flow turned positive, resulting in a positive free cash flow margin. This marks a significant improvement from the negative free cash flow margins in the two comparison periods.
- Operating cash flow exceeded capital expenditure, yielding positive free cash flow and a positive margin. This contrasts with the prior quarter and year-ago quarter, where operating cash flow was negative and insufficient to cover capital expenditure.
- Compared to the immediately preceding quarter, revenue increased slightly, operating cash flow improved from negative to positive, and free cash flow margin improved from negative to positive. Compared to the same quarter one year earlier, revenue was slightly higher, operating cash flow improved from negative to positive, and free cash flow margin improved from negative to positive.
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
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$218.0M
Capital spending and related asset purchases.
FCF margin
23.6%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $6.0B | $1.8B | $291.0M | $1.5B | 25.4% |
| 2025-03-31 | $6.0B | -$79.0M | $236.0M | -$315.0M | -5.3% |
| 2025-06-30 | $6.3B | -$954.0M | $208.0M | -$1.2B | -18.3% |
| 2025-09-30 | $6.5B | $1.8B | $218.0M | $1.5B | 23.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 184.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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.
Cash flow improvement
Operating cash flow turned positive from negative in both comparison periods, driving a similar turnaround in free cash flow.
The positive free cash flow margin represents a material improvement in cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, yielding positive free cash flow and a positive margin. This contrasts with the prior quarter and year-ago quarter, where operating cash flow was negative and insufficient to cover capital expenditure.
Compared to the immediately preceding quarter, revenue increased slightly, operating cash flow improved from negative to positive, and free cash flow margin improved from negative to positive. Compared to the same quarter one year earlier, revenue was slightly higher, operating cash flow improved from negative to positive, and free cash flow margin improved from negative to positive.
Monitor the sustainability of the positive free cash flow margin given the prior periods of negative margins.