Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a sharp reduction in capital expenditure compared to the prior quarter. Revenue and operating cash flow remained stable relative to the year-ago quarter, while capital expenditure was significantly lower.
- Revenue increased from the prior quarter, and operating cash flow remained high, while capital expenditure dropped substantially, resulting in a large positive free cash flow and a free cash flow margin that turned from negative to strongly positive.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by a lower capital expenditure. Versus the same quarter one year ago, free cash flow and free cash flow margin were higher, supported by a higher revenue and a lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$442.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$243.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$318.0M
Cash generated by operations before capital spending.
CapEx
$74.7M
Capital spending and related asset purchases.
FCF margin
320.6%
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 | $693.7M | $310.2M | $87.1M | $223.0M | 32.2% |
| 2025-03-31 | $48.0M | $301.2M | $46.2M | $255.0M | 530.8% |
| 2025-06-30 | $67.2M | $368.1M | $646.9M | -$278.8M | -415.0% |
| 2025-09-30 | $75.9M | $318.0M | $74.7M | $243.3M | 320.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 98.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.3B | 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 fell sharply from the prior quarter and was also lower than the year-ago quarter, which was the strongest observable driver of the improvement in free cash flow.
This reduction directly enabled free cash flow to turn positive and significantly increased the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow remained high, while capital expenditure dropped substantially, resulting in a large positive free cash flow and a free cash flow margin that turned from negative to strongly positive.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by a lower capital expenditure. Versus the same quarter one year ago, free cash flow and free cash flow margin were higher, supported by a higher revenue and a lower capital expenditure.
Monitor the level of capital expenditure in future quarters, as its variability has a significant impact on free cash flow.