Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter saw a significant improvement in free cash flow, turning positive from a negative position in the prior quarter. Free cash flow margin also improved sequentially but remained below the level of the same quarter last year, which reflected a different company structure due to the combination.
- Operating cash flow increased substantially relative to the prior quarter, leading to a positive free cash flow after capital expenditure. The free cash flow margin strengthened compared to the previous quarter, though it was lower than the year-ago period.
- Sequentially, revenue, operating cash flow, and free cash flow all improved, with free cash flow swinging from negative to positive. Compared to the same quarter one year earlier, revenue was higher, but free cash flow margin was lower, reflecting the impact of the combination and increased capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$85.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$307.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$829.0M
Cash generated by operations before capital spending.
CapEx
$522.0M
Capital spending and related asset purchases.
FCF margin
3.9%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $7.7B | $320.0M | $512.0M | -$192.0M | -2.5% |
| 2024-12-31 | $7.5B | $781.0M | $569.0M | $212.0M | 2.8% |
| 2025-03-31 | $7.7B | $235.0M | $477.0M | -$242.0M | -3.2% |
| 2025-06-30 | $7.9B | $829.0M | $522.0M | $307.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1096.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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.
Operating Cash Flow Improvement
Operating cash flow increased sharply from the previous quarter, enabling the company to generate positive free cash flow despite higher capital spending.
The substantial rise in operating cash flow was the primary factor behind the sequential free cash flow recovery.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially relative to the prior quarter, leading to a positive free cash flow after capital expenditure. The free cash flow margin strengthened compared to the previous quarter, though it was lower than the year-ago period.
Sequentially, revenue, operating cash flow, and free cash flow all improved, with free cash flow swinging from negative to positive. Compared to the same quarter one year earlier, revenue was higher, but free cash flow margin was lower, reflecting the impact of the combination and increased capital expenditure.
Monitor the impact of the announced capacity reduction and facility closures on future cash flows.