Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive from a large negative a year earlier, reflecting a significant improvement in cash generation. However, compared with the previous quarter, free cash flow decreased as operating cash flow weakened.
- Revenue remained stable compared with the prior quarter. Operating cash flow, while positive, was lower, and capital expenditure was moderately higher. These factors combined to produce a free cash flow margin that was solid but lower than the preceding quarter.
- Compared with the same quarter a year ago, revenue was higher and cash flow measures improved dramatically from a deeply negative position. Relative to the immediately preceding quarter, revenue was essentially flat while operating cash flow, free cash flow, and margin all declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$355.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$388.4M
Cash generated by operations before capital spending.
CapEx
$32.8M
Capital spending and related asset purchases.
FCF margin
27.2%
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 | $1.2B | $2.7B | $12.4M | $2.7B | 225.5% |
| 2025-06-30 | $1.2B | $1.9B | $12.4M | $1.9B | 150.8% |
| 2025-09-30 | $1.3B | $525.8M | $16.4M | $509.4M | 40.3% |
| 2025-12-31 | $1.3B | $388.4M | $32.8M | $355.6M | 27.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 shifted from a large negative amount one year earlier to a positive figure this quarter, marking the strongest observable improvement in the cash conversion cycle.
This turnaround enabled the company to generate positive free cash flow and a healthy margin after a severely negative prior-year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable compared with the prior quarter. Operating cash flow, while positive, was lower, and capital expenditure was moderately higher. These factors combined to produce a free cash flow margin that was solid but lower than the preceding quarter.
Compared with the same quarter a year ago, revenue was higher and cash flow measures improved dramatically from a deeply negative position. Relative to the immediately preceding quarter, revenue was essentially flat while operating cash flow, free cash flow, and margin all declined.
Monitor the sequential decline in operating cash flow, which drove the reduction in free cash flow from the prior quarter.