Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin turned positive from a negative position a year ago and increased from the previous quarter.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter. After deducting capital expenditure, free cash flow and its margin also improved sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow increased, capital expenditure was lower, and free cash flow rose substantially. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved significantly, capital expenditure was higher, and free cash flow turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$230.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$484.0M
Cash generated by operations before capital spending.
CapEx
$254.0M
Capital spending and related asset purchases.
FCF margin
3.1%
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 | $6.8B | $952.0M | $186.0M | $766.0M | 11.3% |
| 2025-03-31 | $8.5B | $855.0M | $217.0M | $638.0M | 7.5% |
| 2025-06-30 | $6.7B | $451.0M | $378.0M | $73.0M | 1.1% |
| 2025-09-30 | $7.5B | $484.0M | $254.0M | $230.0M | 3.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.2B | 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 was the strongest observable driver, increasing from both the prior quarter and the year-ago quarter. This improvement, combined with a lower capital expenditure relative to the prior quarter, supported a higher free cash flow.
The higher operating cash flow was the primary factor behind the positive free cash flow and margin expansion this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter. After deducting capital expenditure, free cash flow and its margin also improved sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow increased, capital expenditure was lower, and free cash flow rose substantially. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved significantly, capital expenditure was higher, and free cash flow turned from negative to positive.
Monitor the trend in capital expenditure, which was higher year-over-year but lower sequentially, as it directly affects free cash flow conversion.