Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose compared to the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter, though it was lower than the year-ago level.
- Operating cash flow was stable relative to both the prior quarter and the year-ago quarter, while capital expenditure decreased sharply from the prior quarter but increased from the year-ago quarter. The resulting free cash flow margin improved from a negative level in the prior quarter to a positive but lower margin compared to the year-ago quarter.
- Compared to the prior quarter, revenue was lower and capital expenditure was significantly lower, leading to a positive free cash flow versus a negative figure. Compared to the same quarter last year, revenue was higher but capital expenditure was also higher, resulting in a lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$116.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
2.7%
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 | $4.0B | $1.6B | $428.0M | $1.2B | 30.0% |
| 2025-06-30 | $4.5B | $1.7B | $836.0M | $910.0M | 20.1% |
| 2025-09-30 | $5.1B | $1.5B | $2.5B | -$989.0M | -19.2% |
| 2025-12-31 | $4.3B | $1.6B | $1.5B | $116.0M | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 15.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.4% | 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.
Capital Expenditure Reduction
Capital expenditure decreased substantially from the prior quarter, which was the strongest observable driver behind the swing from negative to positive free cash flow.
This reduction directly enabled positive free cash flow despite lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable relative to both the prior quarter and the year-ago quarter, while capital expenditure decreased sharply from the prior quarter but increased from the year-ago quarter. The resulting free cash flow margin improved from a negative level in the prior quarter to a positive but lower margin compared to the year-ago quarter.
Compared to the prior quarter, revenue was lower and capital expenditure was significantly lower, leading to a positive free cash flow versus a negative figure. Compared to the same quarter last year, revenue was higher but capital expenditure was also higher, resulting in a lower free cash flow and margin.
Monitor the level of capital expenditure relative to operating cash flow, as it remains the primary factor influencing free cash flow variability.