Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the prior quarter, driven by higher operating cash flow and a larger revenue base. Compared with the same quarter last year, free cash flow was stable while the margin narrowed as capital expenditure increased substantially.
- Operating cash flow relative to revenue was lower than the prior quarter but higher than a year ago. Free cash flow after capital expenditure increased sequentially, though the free cash flow margin weakened slightly from the prior quarter and more notably from the year-ago quarter.
- Sequentially, revenue, operating cash flow, capital expenditure, and free cash flow all increased, while the free cash flow margin declined slightly. Compared with the same quarter last year, revenue and operating cash flow were higher, capital expenditure rose significantly, and free cash flow was essentially flat, resulting in a lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$820.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$804.0M
Capital spending and related asset purchases.
FCF margin
9.5%
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 | $7.0B | $1.6B | $562.0M | $1.0B | 15.0% |
| 2025-03-31 | $8.0B | $904.0M | $629.0M | $275.0M | 3.4% |
| 2025-06-30 | $7.9B | $1.5B | $749.0M | $776.0M | 9.8% |
| 2025-09-30 | $8.6B | $1.6B | $804.0M | $820.0M | 9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$32.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue-driven operating cash flow
Revenue increased both sequentially and year-over-year, which contributed to higher operating cash flow in the current quarter.
The higher revenue base supported improved absolute free cash flow despite a higher capital expenditure outlay.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow relative to revenue was lower than the prior quarter but higher than a year ago. Free cash flow after capital expenditure increased sequentially, though the free cash flow margin weakened slightly from the prior quarter and more notably from the year-ago quarter.
Sequentially, revenue, operating cash flow, capital expenditure, and free cash flow all increased, while the free cash flow margin declined slightly. Compared with the same quarter last year, revenue and operating cash flow were higher, capital expenditure rose significantly, and free cash flow was essentially flat, resulting in a lower margin.
Monitor future capital expenditure levels relative to operating cash flow, given the announced investments in the Eiger Express Pipeline and Bighorn processing plant.