Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive after a negative prior quarter, driven by a large operating cash inflow and low capital spending. Compared to the same quarter last year, free cash flow was higher despite lower revenue, as capital expenditure was substantially lower.
- Revenue was lower than the prior quarter, but operating cash flow swung from a large outflow to a large inflow, resulting in a free cash flow margin above one hundred percent. Capital expenditure was minimal relative to revenue, further boosting free cash flow.
- Compared to the prior quarter, revenue was lower and operating cash flow improved from negative to positive, leading to a large free cash flow. Versus the same quarter one year earlier, revenue was lower but operating cash flow was higher, and capital expenditure was much lower, resulting in higher free cash flow and a significantly higher margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$891.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$930.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
131.4%
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 | $108.0M | -$1.0B | $117.0M | -$1.2B | -1068.5% |
| 2025-06-30 | $142.0M | -$919.0M | $3.0M | -$922.0M | -649.3% |
| 2025-09-30 | $1.0B | -$847.0M | $33.0M | -$880.0M | -86.6% |
| 2025-12-31 | $678.0M | $930.0M | $39.0M | $891.0M | 131.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -107.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | 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 improvement
Operating cash flow turned from a large negative amount in the prior quarter to a large positive amount in the current quarter, more than offsetting the revenue decline.
This shift was the primary factor behind the free cash flow improvement and the high margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow swung from a large outflow to a large inflow, resulting in a free cash flow margin above one hundred percent. Capital expenditure was minimal relative to revenue, further boosting free cash flow.
Compared to the prior quarter, revenue was lower and operating cash flow improved from negative to positive, leading to a large free cash flow. Versus the same quarter one year earlier, revenue was lower but operating cash flow was higher, and capital expenditure was much lower, resulting in higher free cash flow and a significantly higher margin.
Monitor the sustainability of operating cash flow given the full-year net outflow reported in the filing context.