Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter ended December 31, 2025, free cash flow was positive but the margin was low. Compared to the preceding quarter, cash conversion weakened significantly; versus the same quarter a year earlier, free cash flow improved from negative to positive, driven by lower capital expenditure.
- Revenue was lower than the prior quarter, while operating cash flow declined more sharply and capital expenditure increased slightly, resulting in a much lower free cash flow and margin. Compared to a year ago, revenue was higher but operating cash flow was lower; however, capital expenditure was substantially lower, turning free cash flow positive.
- Sequentially, all key metrics weakened: revenue, operating cash flow, free cash flow, and margin were all lower. Year-over-year, revenue was higher, operating cash flow was lower, but free cash flow improved from negative to positive and margin turned positive, primarily due to a large reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$501.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$84.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$272.7M
Cash generated by operations before capital spending.
CapEx
$188.5M
Capital spending and related asset purchases.
FCF margin
1.9%
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 | $4.4B | $152.6M | $305.5M | -$152.9M | -3.5% |
| 2025-06-30 | $4.6B | $301.6M | $288.3M | $13.3M | 0.3% |
| 2025-09-30 | $4.8B | $722.6M | $165.7M | $556.9M | 11.5% |
| 2025-12-31 | $4.4B | $272.7M | $188.5M | $84.2M | 1.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 31.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | 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 Decline
Operating cash flow decreased substantially from the preceding quarter, while revenue also fell but at a slower pace. This led to a lower cash conversion rate and a significant contraction in free cash flow.
The decline in operating cash flow was the primary factor behind the weakened free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, while operating cash flow declined more sharply and capital expenditure increased slightly, resulting in a much lower free cash flow and margin. Compared to a year ago, revenue was higher but operating cash flow was lower; however, capital expenditure was substantially lower, turning free cash flow positive.
Sequentially, all key metrics weakened: revenue, operating cash flow, free cash flow, and margin were all lower. Year-over-year, revenue was higher, operating cash flow was lower, but free cash flow improved from negative to positive and margin turned positive, primarily due to a large reduction in capital expenditure.
Monitor the trend in operating cash flow, as it declined sharply from the prior quarter despite a smaller drop in revenue.