Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter and the year-ago quarter, driving a swing to positive free cash flow. Capital expenditure was lower than both comparison periods, further supporting the cash conversion.
- Revenue increased compared with both the prior quarter and the year-ago quarter, while operating cash flow rose more than proportionally, resulting in a positive free cash flow margin. Capital expenditure declined from both comparison periods, contributing to the improvement in free cash flow.
- Compared with the immediately preceding quarter, free cash flow turned from negative to positive, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow also improved from negative to positive, with operating cash flow higher and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$177.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$322.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$728.0M
Capital spending and related asset purchases.
FCF margin
10.0%
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 | $2.5B | $367.0M | $978.0M | -$611.0M | -24.8% |
| 2025-03-31 | $3.2B | $1.0B | $628.0M | $421.0M | 13.1% |
| 2025-06-30 | $2.8B | $478.0M | $787.0M | -$309.0M | -11.0% |
| 2025-09-30 | $3.2B | $1.1B | $728.0M | $322.0M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.2B | 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 substantially higher than both the prior quarter and the year-ago quarter, while revenue also increased. This combination drove the free cash flow margin from negative to positive.
The improvement in operating cash flow was the strongest observable factor behind the swing to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared with both the prior quarter and the year-ago quarter, while operating cash flow rose more than proportionally, resulting in a positive free cash flow margin. Capital expenditure declined from both comparison periods, contributing to the improvement in free cash flow.
Compared with the immediately preceding quarter, free cash flow turned from negative to positive, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow also improved from negative to positive, with operating cash flow higher and capital expenditure lower.
Monitor whether operating cash flow can sustain its current level relative to revenue in subsequent quarters.