Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated positive free cash flow this quarter, a notable turnaround from both the preceding quarter and the same quarter last year. Operating cash flow increased while capital expenditure declined, lifting free cash flow into positive territory.
- Revenue was flat compared to a year ago, but operating cash flow improved as a proportion of revenue. Capital expenditure decreased, allowing free cash flow margin to turn positive.
- Compared to the prior quarter, revenue and operating cash flow were higher, and capital expenditure was lower, resulting in a sharp improvement in free cash flow. Versus the same quarter one year earlier, revenue was stable, operating cash flow was modestly higher, capital expenditure was lower, and free cash flow flipped from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$718.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$42.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$665.0M
Cash generated by operations before capital spending.
CapEx
$623.0M
Capital spending and related asset purchases.
FCF margin
2.3%
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 | $1.1B | $439.5M | $531.6M | -$92.1M | -8.4% |
| 2025-03-31 | $1.0B | $401.9M | $622.6M | -$220.7M | -21.4% |
| 2025-06-30 | $1.4B | $261.4M | $709.5M | -$448.1M | -33.0% |
| 2025-09-30 | $1.8B | $665.0M | $623.0M | $42.0M | 2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 10.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 34.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.8B | 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 growth
Operating cash flow increased versus both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This improvement occurred even as revenue was stable year over year.
Higher operating cash flow combined with lower capital spending drove free cash flow into positive territory this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was flat compared to a year ago, but operating cash flow improved as a proportion of revenue. Capital expenditure decreased, allowing free cash flow margin to turn positive.
Compared to the prior quarter, revenue and operating cash flow were higher, and capital expenditure was lower, resulting in a sharp improvement in free cash flow. Versus the same quarter one year earlier, revenue was stable, operating cash flow was modestly higher, capital expenditure was lower, and free cash flow flipped from negative to positive.
Monitor the trajectory of capital expenditure, as it declined this quarter after being elevated in the prior periods.