Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow remained stable year over year while capital expenditure decreased, resulting in a positive free cash flow margin that improved from the prior quarter. Revenue was unchanged sequentially but higher than the same quarter last year.
- Revenue was unchanged from the prior quarter, while operating cash flow increased significantly, leading to a higher free cash flow margin. Capital expenditure was lower than both the preceding quarter and the year-ago quarter, supporting the conversion of operating cash flow into positive free cash flow.
- Compared to the prior quarter, free cash flow turned from negative to positive, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter last year, free cash flow and margin were slightly lower, as operating cash flow was similar but capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$331.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$532.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$807.0M
Capital spending and related asset purchases.
FCF margin
6.2%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $7.1B | $733.0M | $879.0M | -$146.0M | -2.1% |
| 2025-04-05 | $7.8B | $364.0M | $859.0M | -$495.0M | -6.3% |
| 2025-07-05 | $8.5B | $732.0M | $954.0M | -$222.0M | -2.6% |
| 2025-10-04 | $8.5B | $1.3B | $807.0M | $532.0M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.5% | 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 increased substantially from the prior quarter, reversing the prior period's negative free cash flow. This improvement was the primary factor behind the positive free cash flow margin this quarter.
The recovery in operating cash flow enabled the company to generate positive free cash flow despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, while operating cash flow increased significantly, leading to a higher free cash flow margin. Capital expenditure was lower than both the preceding quarter and the year-ago quarter, supporting the conversion of operating cash flow into positive free cash flow.
Compared to the prior quarter, free cash flow turned from negative to positive, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter last year, free cash flow and margin were slightly lower, as operating cash flow was similar but capital expenditure was slightly higher.
Monitor the trend in capital expenditure relative to operating cash flow, as a sustained reduction in capital spending supported free cash flow this quarter.